HP says it will layoff up to 6,000 workers over the next couple of years
HP says it will layoff up to 6,000 workers over the next couple of years
HP is laying off up to 6,000 workers as part of its restructuring plan. The job cuts are a continuation of a restructuring plan, which has already resulted in the loss of 25,000 jobs since last year. HP CEO Dion Weisler said the company will provide “comprehensive transition support.” It’s not clear yet how many jobs will be lost in the US. The news comes as HP (HPQ) shares are down more than 7% this year on concerns about slowing PC sales and competition from Chinese companies like Huawei Technologies Co Ltd (HWT) and Lenovo Group Ltd (LNVGY).
The layoffs will take place over the next two years and are part of a restructuring plan announced by HP last week. The company says it expects these actions to have no impact on its US operations or its customers outside of North America.
The job cuts are a continuation of a restructuring plan.
The job cuts are a continuation of HP’s restructuring plan, which has been in place since early 2018. The company said it would lay off up to 6,000 employees as part of its cost-saving initiative and that it expects to reduce its operating expenses by $1 billion over the next two years.
HP spent more than $16 billion on acquisitions between 2011 and 2017 and had $66 billion in cash at the end of last year. It also had more than 100 acquisitions pending at the end of last year according to Bloomberg News’ database—but with costs rising so steeply now that even those deals aren’t looking too good anymore for HP (NYSE:HPE).
It’s not clear yet how many jobs will be lost in the US.
While it’s not clear yet how many jobs will be lost in the US, HP has already laid off a number of employees. In March 2019, HP announced that it would be laying off 1,700 people from its workforce in Europe due to a decline in sales of PCs and printer ink.
In addition to these layoffs overseas, HP also announced plans to cut 1,000 more jobs within its home country by 2020. The company said that this move would help them focus on their core business instead of expanding into new areas like cloud computing and artificial intelligence (AI).
HP CEO Dion Weisler said the company will provide “comprehensive transition support.”
“We are committed to helping our employees find new jobs within HP,” he said. “And we will provide comprehensive severance and outplacement services.”
The company says it will also make other staff changes over the next couple of years, including reducing its headcount by as many as 6.5%, or 1,500 jobs.
