The American-IT giant into computers and technology, HP plans to trim its workforce. The company plans to slash 3,000 to 4,000 jobs globally in the next three years, according to a new filing with the SEC. The hardware business of former Hewlett-Packard announced this plan as a part of the larger restructuring effort.
While the details on the job cuts are still fairly vague, with the report noting that “changes to the workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate,” TechCrunch reports.
As a cost-saving measure, HP hopes the cuts will generate approximately $200m (£163m) to $300m in annual savings for the firm, but they are expected to cost up to $500m in charges, which includes $200 million attributable to labour costs.
Furthermore, the company issued lower-than-expected earnings guidance for next year, expecting the adjusted profit for fiscal 2017 to be between $1.55 and $1.65 per share.
Last year, HP splits into two businesses namely: HP Inc, which focuses on printers and computers; and Hewlett Packard Enterprise, which sold its software business to focus on data storage. These job cuts come as sales of personal computers around the world continue to decline.
Considering the dent in profits experienced owing to decline in sales of personal computers over the last few years, HP has already initiated tens of thousands of job cuts in the recent times.
Dion Weisler, President and CEO, HP said, “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.”
The company will eliminate positions across the board, Chief Executive Officer Dion Weisler said at the company’s analyst meeting held in New York. The reductions could include about 1,000 jobs being outsourced if the number of positions edges close to 4,000, Chief Financial Officer Cathie Lesjak was quoted by Bloomberg.