In mid-September of 2015, Hewlett-Packard announced that it plans to cut 25,000 to 30,000 jobs as it prepares to split into two publicly-traded companies. The cuts, which at that time amounted to about 10% of the company’s 300,000-employee global workforce, primarily impacted its enterprises services group, which focuses on cloud technology and cyber security. The job cuts were part of a restructuring plan expected to save the company $2.7 billion in annual costs. Now, just over a year later, HP has again announced the cutting of 3,000 to 4,000 jobs over the next three years. Its other company, its PC and printer firm, told the U.S. Securities and Exchange Commission that it expects about “3,000 to 4,000 employees to exit between fiscal 2017 and fiscal 2019.” It went on to say that its printing business “is challenged right, now but the PC business is hitting on all cylinders,” said Patrick Moorhead, President and Principal Analyst of Moor Insights & Strategy. “The PC Group is gaining market share, increasing profits and innovating more than I have seen in years,” he added.
The workforce changes will vary by country, based on local legal requirements and consultations with employee works councils and other employee reps. About 3,000 jobs during the company’s 2016 fiscal year ending Oct. 31 are expected to be cut. The entire restructuring plan, approved by the HP Board recently, is expected to generate a gross annual savings of about $200 million to $300 million starting in fiscal 2020. Although its core markets are challenged, HP expects to “see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitization of graphics and manufacturing through our leading 3D printing solutions,” said Dion Weisler, company President and CEO.
HP to cut another 3,000 to 4,000 jobs
