HP Inc. Layoffs: Up to 4,000 New Job Cuts
In a layoff update, HP Inc. today confirmed plans to cut 3,000 to 4,000 jobs over the next three years. The cuts come as the PC and printer maker trims its profit forecast for fiscal 2017, and tries to reinvent its business around 3D printing, multi-function printers and more.
Optimism around HP had been improving in recent months, especially when Intel in September hinted that the PC market was improving. But optimism faded in recent days, especially when Gartner and IDC both confirmed that PC industry sales dropped yet again in Q3 2016. It was the eighth consecutive quarterly PC sales decline, Gartner said.
In an SEC filing today, HP said it expects to cut 3,000 to 4,000 employees between fiscal 2017 and fiscal 2019. The cuts will save the company about $200 million to $300 million starting in fiscal 2020.
The new round of job cuts come on top of HP’s previously announced layoffs — of about 3,000 — for fiscal 2016.
Fewer Employees, Lower Profits, Bigger Dividend
HP also cut its profit forecast, predicting earnings for fiscal 2017 of about $1.55-$1.65 per share. Analysts on average had expected $1.61 per share, according to Reuters. In a gesture to shareholders, HP also raised its quarterly dividend by 7 percent and said it is increasing its share repurchase program by $3 billion, Reuters added.
I’m not positive, but I believe the new job cut plan is “in addition to” previously announced cuts of about 3,000 jobs in fiscal 2016.
HP also has its hands full acquiring Samsung’s printer business. That $1.05 billion deal, announced in September, could further bolster HP’s multi-function printer (MFP) and managed print services (MPS) businesses.