Author: Tronserve admin
Monday 2nd August 2021 10:56 PM
PC Maker HP To Cut Up To 9,000 Jobs In Restructuring Push
U.S. personal computer maker HP Inc remarked on Thursday that it will slice up to 16% of its workforce with regard to a restructuring plan aimed at cutting costs. The company will cut about 7,000 to 9,000 jobs through a combination of employee exits and voluntary early retirement, it said in a statement.
HP estimates the plan can lead to annual gross run rate savings of about $1 billion by the end of fiscal 2022, it added. The company had about 55,000 employees worldwide as of Oct. 31, according to a filing with the U.S. Securities and Exchange Commission. That would probably mean up to 16% targeted in the cuts, Reuters calculation showed.
In connection with the restructuring, HP said it expects to bear an overall charge of up to $1 billion, of which $100 million will be realized when it reports its fourth-quarter earnings. “We are taking bold and decisive actions as we embark on our next chapter,” said Enrique Lores, the company’s incoming chief executive officer.
“We see significant opportunities to create shareholder value and we will accomplish this by advancing our leadership, disrupting industries and aggressively transforming the way we work.”
Lores will take over the CEO position on Nov. 1 from Dion Weisler. Palo Alto, California-based HP also said its board on Sept. 30 endorsed an additional $5 billion in share buybacks. HP expects to generate free cash flow of at least $3 billion in fiscal 2020 and return at least 75% to shareholders through a 10% quarterly dividend rise and share buybacks, it added.
The company said it desires its adjusted earnings in the range of $2.22 to $2.32 per share for fiscal 2020. For the current fiscal year, it expects adjusted earnings to be in range of $2.18 to $2.22, the company said when reporting its third-quarter earnings. HP’s shares have fallen about 10% this year up to Thursday’s close.