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HP plans major restructuring; hundreds of job cuts in store

HP Inc last week announced a fiscal year 2020 restructuring plan to simplify its operating model and become a more digitally-enabled company.

Reported by: IANS New Delhi Published on: October 07, 2019 13:57 IST
HP job cut

HP plans major restructuring

As the incoming HP Inc President and CEO Enrique Lores announced restructuring plans that will save $1 billion by the end of 2022, the company on Monday said it is a global restructuring plan and not any country or location-specific move.

HP Inc last week announced a fiscal year 2020 restructuring plan to simplify its operating model and become a more digitally-enabled company.

The company expects to reduce gross global headcount by approximately 7,000-9,000 employees through a combination of employee exits and voluntary early retirement.

"This is a global restructuring and we're not breaking down numbers by site or location," HP Inc said in a statement shared with IANS.

According to Lores, the company is taking bold and decisive actions as it embarks on its next chapter.

"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," Lores said last week.

HP Inc. in August announced that Dion Weisler would be stepping down as the President and CEO "due to a family health matter" and would be succeeded by Lores from November 1.

Weisler joined HP in 2012 and has served as President and CEO since 2015.

Weisler will work with Lores to ensure a seamless transition and will remain at the company through January 2020. Following this, Weisler will continue to serve on HP's board of directors until the next annual meeting of stockholders.

"We will become an even more customer-focused and digitally-enabled company, that will lead with innovation and execute with purpose," said Lores.

Based on the current environment, HP anticipates generating free cash flow of at least $3 billion for fiscal 2020.

In fiscal 2020, the company indicated that it expects to return at least 75 per cent of free cash flow, with a 10 per cent increase in the planned quarterly dividend amount, and the balance returned to shareholders through share repurchases.

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