HP has unveiled plans to slash its global workforce by as much as 16 per cent, impacting between 7000 and 9000 employees worldwide.
The technology giant will carry out the strategy through firings and voluntary early retirement offers, in a move designed to save approximately $1 billion within the next three years.
On the flip side, the vendor expects to incur costs of approximately $1 billion in connection with the restructuring and other charges, with approximately $100 million during the fourth quarter of 2019, $500 million in fiscal 2020 and the rest split between fiscal 2021 and 2022.
“We are taking bold and decisive actions as we embark on our next chapter,” said Enrique Lores, incoming president and CEO of HP. “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.”
According to Lores - announced as the successor to Dion Weisler in August - the restructuring plan will allow the business to “simplify its operating model and become a more digitally enabled company”.
“We will become an even more customer-focused and digitally enabled company, that will lead with innovation and execute with purpose,” he added.
The plan represents the first major act in the top role for Lores, who will officially take over the reins effective November 1.
As reported by Channel Asia, Weisler unveiled plans to exit as CEO of HP in August, returning home to Australia due to a “family health matter”.
Following the decision, Lores was “unanimously appointed” from his current position of president of HP's Imaging, and will work with Weisler in the months ahead to ensure a “seamless transition”.
Meanwhile, Weisler will remain at the company until January 2020, while continuing to serve on HP’s board of directors until the next annual meeting of stockholders.