HP Layoffs: Up to 4,000 Job Cuts Planned

Advertisement

HP Inc (NYSE:HPQ) is planning layoffs for 3,000 to 4,000 employees.

HP Layoffs
Source: hp.com

The HP layoffs announced by the company are expected to take place over the next three year. The decision to lay off employees is being made to help the company save money with the decline in the computer market.

The HP layoffs are expected to save the tech company between $200 million to $300 million per year by fiscal 2020. The company currently employs some 50,000 people. HPQ has also been speeding up previous plans to layoff 3,000 employees before Christmas of this year.

While the HP layoffs are expected to save the company money over time, it will face charges in connection to those layoffs. The company is looking at $200 million in charges connected to laying off the 3,000 to 4,000 employees. This is part of a larger sum of $350 million to $500 million in restructuring charges, reports Fortune.

The trouble in the PC market isn’t just one that HP is facing. According to research firm Gartner, the industry has been in decline for the last eight months. This is the longest time the market has ever been in decline. PC shipments from the third quarter of the year alone were down 5.7%, Reuters notes.

“Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey,” Dion Weisler, President and CEO of HP, told TechCrunch. “We are confident in our strategy and believe it will continue to produce reliable returns and cash flow, while also enabling HP to invest in differentiated innovation and long-term growth.”

HPQ stock was down 2% as of Friday afternoon.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2016/10/hp-layoffs/.

©2024 InvestorPlace Media, LLC