HP (NYSE:HPQ) layoffs will have the company reducing its headcount by as much as 9,000 employees.
These HP layoffs are the plan of incoming President and CEO Enrique Lores. They are part of the company’s restructuring plan that looks to save it $1 billion a year by the end of fiscal 2022.
According to the HP layoffs news release, the company will be going forward with this plan over the next few years. It is planning for these layoffs to take place over this period of time. HP is expecting the layoffs to be a mix of forced exits and voluntary early retirement.
The HP layoffs and restructuring plans will end up costing the company $1 billion. This won’t hit it all at once though. Instead, the company will suffer a $100 million charge in the fourth quarter of 2019. Another $500 will charges will take place in fiscal 2020. The remaining will occur during the couple of years after this.
“”We are taking bold and decisive actions as we embark on our next chapter,” Lores said in a statement. “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. ”
The HP layoffs news comes alongside an update to the company’s fiscal 2020 outlook. This has it expecting non-GAAP earnings per share between $2.22 and $2.32 for the year. Wall Street is looking for HPQ to report earnings per share of $2.24 for fiscal 2020.
HPQ stock was down 10% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.