HP to expand its plan for job cuts with 5,000 workers under threat
HP, the world's largest personal-computer maker, increased its planned job cuts to 4,500 to 5,000 employees by the end of the financial year 2019 - or as many as 1,000 more than the company had estimated as part of a reorganisation unveiled almost two years ago.
The company will incur pre-tax restructuring charges of about $700m (€594m) for the job cuts, an increase from the original estimate of $500m (€424m), HP said in a regulatory filing.
During a conference call on May 29, executives had said they were expanding the job cuts that began in 2017, although they provided few specifics at the time.
California-based HP had 49,000 employees as of October 31. Under CEO Dion Weisler, it has produced consistent growth in the midst of waning demand for PCs. The company has gained market share with more-desirable, higher-end computers, including gaming machines that can be more profitable. The printer business also helped power HP's profit, as the company sells more-expensive devices to corporate clients after integrating Samsung Electronics' unit.
HP shares have gained 25pc in the past 12 months. After reporting its seventh consecutive quarter of sales growth, HP on May 29 raised its profit forecast for the 2018 financial year to a range of $1.97 to $2.02 a share from $1.90 to $2. Analysts had projected $1.97 a share. (Bloomberg)