HP Inc says to accelerate job cuts by 2016
HP Inc said it was accelerating its restructuring programme and now expects about 3,000 people will exit by the end of fiscal 2016 instead of over three years as it announced in September.
Then, Hewlett-Packard Co had said it expected to cut about 33,300 jobs over three years, of which up to 3,300 were to be cut in HP Inc. It said then that 1,200 people would leave the company by the end of 2016.
The restructuring will result in charges and associated cash payments of about $300 million in the current year, the company said.
"This move is basically HP Inc embracing the tough pricing environment and shifting their focus to building their portfolio," says Shannon Cross, an analyst for Cross Research. HP Inc, which houses former Hewlett-Packard Co's legacy hardware business, reported a near 12 percent drop in quarterly revenue, as it struggles with weak demand for PCs and printers.