HP Plans to Axe around 5,000 Jobs in a Restructuring Plan | Tech News
The US-based PC maker, Hewlett-Packard Inc (HPQ.N) is expecting to send about 4,500 to 5,000 employees of its workforce home by the end of fiscal year 2019. In an official statement on Tuesday (June 5), the job cuts are taken as part of the company’s ongoing restructuring plan.
In October 2016, HP’s management board had approved a set of restructuring program that would be implemented through fiscal year 2019. Previously, around 4,000 employees were expected to be affected by the layoffs. However, in May this year, the company said that it expected that the number would increase by 1 or 2 percent.
As of Oct 31 last year, there are some 49,000 people employed in the organisation, Reuters reports.
Formed in 2015 when the Hewlett-Packard Co was split into two parts, HP said that current regulatory filing expects pretax charges of about $700 million related to the layoffs, compared with about $500 million forecast earlier. The company estimates that about half of the expected pretax costs are related to severance and the remaining costs due to infrastructure, non-labor actions, as well as other charges.
It is reported when Hewlett-Packard Co was so split up, HP Inc focused more on dealing with the consumer hardware business, such as sales of PCs and printers. Meanwhile, Hewlett Packard Enterprise Co hosted the company’s data-center, software and services units.
HP, which has the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6 percent market share, reported better-than-expected quarterly sales of $14 billion in the quarter ended April 30.