Hewlett Packard Company is planning to slash 16 per cent of its workforce threatening thousands of jobs in a move it says will save it $1 billion by 2022.
HP, one of the world’s largest computer manufacturers and sellers, announced last week that it planned to cut between 7000 and 9000 jobs via redundancies and voluntary early retirements as it seeks to dramatically shrink its operations.
The move is expected to cost the retailer $1 billion in restructuring charges between now and 2022, but also expects the job cuts to save it $1 billion over the same time-frame.
“We are taking bold and decisive actions as we embark on our next chapter,” incoming chief executive Enrique Lores, who will replace Dion Weislet on November 1, 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.
“We will become an even more customer-focused and digitally enabled company, that will lead with innovation and execute with purpose.”
The news has sent HP’s shares diving over 10 per cent, despite stating that it anticipates non-GAAP diluted net earnings per share to come in at between $2.22 and $2.32 per share for the current fiscal year, in line with average estimates of $2.23 per share.