HP to cut up to 9,000 jobs in global restructure Credit: Melissa RiofrioIDGIDG
Business Management

HP to cut up to 9,000 jobs in global restructure

HP has announced a restructure plan that will see its global headcount reduced by up to 9,000 employees.

In its fiscal 2020 outlook, HP revealed that this will be in order to "simplify its operating model and become a more digitally enabled company".

The cut in the headcount will be a combination of "employee exits" and voluntary early retirement and it is expected to be completed in fiscal 2022.

The restructure could cost the company up to US$1 billion, with approximately US$100 million in fiscal Q4 of 2019, US$500 million in fiscal 2020 and the rest split between fiscal 2021 and 2022.

HP estimates that these actions will result in annualised gross run rate savings of about US$1 billion by the end of fiscal 2022.

“We are taking bold and decisive actions as we embark on our next chapter,” said Enrique Lores, incoming president and chief executive officer at HP.

“We see significant opportunities to create shareholder value and we will accomplish this by advancing our leadership, disrupting industries and aggressively transforming the way we work.

"We will become an even more customer-focused and digitally enabled company that will lead with innovation and execute with purpose," Lores added.

In August, HP announced CEO Dion Weisler's plans to leave the company and move back to Australia due to a "family health matter".

Read more: Chris Hewlett is now HP enterprise sales director

HP president of imaging, printing and solutions business Enrique Lores was appointed Weisler's replacement effective 1 November.

HP Australia has been contacted for further clarification.

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