HP Layoffs 2018: Staff Headcount Cuts May Reach 5,000 Positions
HP Inc. layoffs will trigger 4,500 to 5,000 staff cuts by the end of the PC and printer maker’s fiscal 2019. That’s up from an earlier estimate of up to 4,000 job cuts as part of a long-term headcount plan announced in 2016.
Indeed, HP Inc. back in October 2016 confirmed plans to cut 3,000 to 4,000 positions from fiscal 2017 to fiscal 2019. At the time, HP Inc. said the cuts will save the company about $200 million to $300 million starting in fiscal 2020.
Fast forward to present day, and HP Inc. now says the layoffs could impact 5,000 employees. The company employed 49,000 people as of October 31, according to Reuters. The company expects pretax charges of about $700 million related to the layoffs, up from the previous forecast of $500 million, Reuters adds.
HP Inc.’s PC, Printer Businesses Are Growing
Despite the layoff chatter, HP Inc. has been performing well in the intensely competitive PC and printer markets. For its Q2, overall revenues rose 13 percent to $14 billion — with PC revenues jumping 14 percent and printing revenues climbing 11 percent.
Layoffs within the hardware and legacy software markets have been commonplace amid the ongoing shift to cloud and mobile services, coupled with subscription revenue models. HP Inc. has responded with aggressive device-as-a-service strategies for partners.
The updated HP Inc. layoff announcement comes roughly two weeks after IBM quietly cut Watson Healthcare employees without disclosing specific headcount figures to the media.