HP will cut up to 4,000 jobs over the next 3 years
Lowered profit expectations might have prompted the cost-cutting.
HP is no stranger to large-scale job cuts, and it's unfortunately gearing up for another round. A filing from the PC maker (not the split-off enterprise company) has revealed that it plans to cut 3,000 to 4,000 jobs over the next three years, ending sometime in fiscal 2019. HP doesn't say what's prompting the cuts, but it just set its profit expectations for fiscal 2017 (which ends in October) below what financial analysts had been expecting -- it could be a matter of recovering some profitability. HP's computer shipments have been largely flat lately, so it can't count on a surge in demand to boost its bottom line.
That's supported by the expected savings. Although HP plans to take on $350 million to $500 million in restructuring costs, it expects to save $200 million to $300 million per year from fiscal 2020 onward. No, this won't be much consolation to those finding themselves out of work, but it could help HP stay healthy in a mostly bleak PC market.
