HP Incorporation will slash as much as 16 per cent of its workforce as part of a broad restructuring meant to cut costs and boost sales growth amid the company’s first change in top leadership in four years.
The personal computer giant said that it will cut 7,000 to 9,000 positions through firings and voluntary early retirement. In the statement, the job reductions will help to save about $1 billion by the end of fiscal 2022, the Palo Alto, California-based company said Thursday. Last time, it was disclosed that HP had 55,000 employees a year ago.
The company also announced it expects a profit, excluding restructuring costs and other items, to be $2.22 to $2.32 a share in fiscal 2020. According to data, average estimated $2.23 a share, compiled by Bloomberg. HP’s shares slid more than 5 per cent in after-hours trading.
“The bulk of the savings will be in corporate functions, back-office support,” Chief Financial Officer Steve Fieler said about the job cuts in an interview.
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