HP has announced that it intends to slash between 3,000 and 4,000 jobs over the next three years, as the PC maker struggles against lower-than-expected profit expectations.
The restructuring will affect the personal computer company, HP Inc, not the commercial tech-focused Hewlett-Packard Enterprise. The cuts are expected to happen before the end of fiscal 2019.
“Our core markets are challenged and macro economic conditions are in flux right now,” HP Chief Executive Dion Weisler told Reuters.
Although HP didn’t specify what has led to the decision to reduce employee numbers, the news follows a disappointing expected profit for fiscal 2017, of $US1.55-$US1.65 per share. Analysts had previously predicted that figure would be around $US1.61 per share.
“I’m proud of the progress we have made in our first year as the new HP. Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey,” Weisler said in a statement to go alongside fiscal 2017’s financial outlook.
The restructuring is expected to cost HP $US350 million to $US500 million, but the company said these cost-saving measures will generate an annual saving of between $US200 million and $US300 million, beginning in the fiscal year 2020.