HP Layoffs 2018: Company to Cut Up to 5,000 Jobs

HPQ shares gained about 0.1% Wednesday

HP Inc (NYSE:HPQ) announced that it is undergoing another workforce reduction as the company is laying off up to 5,000 workers over the coming months.

The Palo Alto-based tech giant said that its latest layoffs will see between 4,500 and 5,000 employees leaving the company by the end of its fiscal 2019 as part of an ongoing restructuring plan, according to statements from the company on Tuesday.

The move has its origins from back in October 2016, when the HP board approved a restructuring plan that will be implemented through its fiscal year 2019, under which it was slated to cut about 4,000 jobs. Last month, the company said this number was slated to increase by 1 to 2%.

The company had about 49,000 workers as of Oct. 31. HP has been around as its own company since 2015 when Hewlett-Packard Co was split into two and the new company now projects pretax charges of roughly $700 million connected to the layoffs, compared to a previous forecast of $500 million.

The PC maker adds that roughly half of these pretax costs will be related to severance and remaining costs due to infrastructure, non-labor actions, plus other charges. HP led the world in PC shipments around the globe in the first calendar quarter of 2018 with a 22.6% market share, while its quarterly sales reached $14 billion.

HPQ stock gained about 0.1% on the news.

Article printed from InvestorPlace Media, https://investorplace.com/2018/06/hp-layoffs-hp-inc-hpq/.

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