HP to cut about 7,000 to 9,000 jobs in restructuring push

HP expects to incur labor and non-labor costs of about $1 billion in connection with the restructuring.

October 04, 2019 11:53 am | Updated 01:10 pm IST

An attendee at the Microsoft Ignite technology conference walks past the Hewlett-Packard (HP) logo in Chicago, Illinois, in this May 4, 2015 file photo.

An attendee at the Microsoft Ignite technology conference walks past the Hewlett-Packard (HP) logo in Chicago, Illinois, in this May 4, 2015 file photo.

Personal computer maker HP said on October 4 that it will cut about 7,000 to 9,000 jobs as part of its fiscal 2020 restructuring plan. HP estimates that the plan will result in annualized gross run rate savings of about $1 billion by the end of fiscal 2022, it said.

The company had about 55,000 employees worldwide as of October 31, 2018, according to a filing with the U.S. Securities and Exchange Commission.

HP expects to incur labor and non-labor costs of about $1 billion in connection with the restructuring, it added.

“We are taking bold and decisive actions as we embark on our next chapter,” Enrique Lores, the company's incoming chief executive officer, said. “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.”

Mr. Lores will take over the CEO position on November 1 from Dion Weisler.

HP also said it expects to generate free cash flow of at least $3 billion during its fiscal year in 2020 and planned to increase its quarterly dividend by 10%.

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