HP Inc Will Cut Up To 4,000 Jobs Over The Next Three Years
Challenges in the PC market appear to be forcing HP Inc to undergo further restructuring
HP Inc has said it expects to cut between 3,000 and 4,000 jobs over the next three years due to challenges in the personal computer and printer markets.
The job cuts are expected to come as part of a restructuring effort by HP Inc to make annual run rate savings of $200 million to $300 million beginning in its 2020 fiscal year.
“As part of the plan, HP expects approximately 3,000 to 4,000 employees to exit between fiscal 2017 and fiscal 2019. The 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,” the company said.
Challenging times for HP
After HP split into the enterprise and cloud focused HPE, and hardware and personal computing business HP Inc, it was predicted that both companies would be able to operate more efficiently and effectively.
Depending on how you look at it, the two businesses are either taking efficiency measures further or struggling to make the split work for them. HPE has been offloading its ‘non-core’ software assets to Micro Focus, while HP Inc has seen a slump in profits despite strong laptop sales.
“Our core markets are challenged and macro economic conditions are in flux right now,” said HP Inc chief executive Dion Weisler, appearing to levee blame at the declining shipment of PCs in 2016.
“Although our markets remain very challenged, we are committed to innovating in the core and continue to see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitisation of manufacturing though our leading 3D printing solutions.”
Weisler’s confidence in growth opportunities seem to be backed-up by its recent acquisition of Samsung’s printer division for $1 billion.
HP Inc could make a bit of a comeback towards the end of the year with the release of its MacBook Air-challenging Spectre 13 laptop, as well as its recent unveiling of laptops with built-in privacy screens designed to curtail snoopers in the physical world; something that’s likely to appeal to people working in sectors where privacy is paramount.
Earlier this week, Fujitsu confirmed it was set to slash as many as 1,800 jobs in the UK.
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