UPDATE: HP, Inc. (HPQ) Plans to Cut Up to 4,000 Jobs Across Divisions Over Three Years
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(Updated - October 13, 2016 4:37 PM EDT)
HP, Inc. (NYSE: HPQ) plans to cut up to 4,000 jobs across divisions over 3 years.
UPDATE - The company disclosed the following on Thursday:
Item 2.05. Costs Associated with Exit or Disposal Activities.
On October 10, 2016, the Board of Directors (the “Board”) of HP Inc. (“HP”) approved a restructuring plan (“the plan”) that it expects will be implemented through fiscal 2019 and is expected to generate gross annual run rate savings of approximately $200 million to $300 million beginning in fiscal 2020.
As part of the plan, HP expects approximately 3,000 to 4,000 employees to exit between fiscal 2017 and fiscal 2019. The changes to the workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate.
In connection with the plan, HP anticipates incurring approximately $350 million to $500 million in restructuring and other charges due to both labor and non-labor actions. Of these amounts, HP expects to incur approximately $200 million in labor costs related to workforce reductions.
Item 7.01.Regulation FD Disclosure.
On October 10, 2016, the Board authorized an increase of approximately 7% in HP’s planned quarterly cash dividend amount payable to holders of record of its outstanding common stock, commencing with the dividend for the first fiscal quarter of fiscal year 2017, which would result in a quarterly dividend of $0.1327 per share. Each future quarterly dividend must be declared by the Board out of legally available sources prior to payment.
On October 13, 2016, HP issued a press release entitled “HP Inc. Announces Fiscal 2017 Financial Outlook”, which discusses its 2016 Securities Analyst Meeting, during which HP provided a strategy update and financial outlook for its 2017 fiscal year. The text of the press release is furnished herewith as Exhibit 99.1. The slides presented at the 2016 Securities Analyst Meeting will be available for a period of one year thereafter at www.hp.com/investor/SAM2016.
The information reported in this report, including the press release attached as Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended.
NOTE: The company is holding a Securities Meeting today. Presentation slides are embedded below:
Dion Weisler: Reinventing HP
Ron Coughlin: Personal Systems Positioned for Success
Enrique Lores: Reinventing Print
Stephen Nigro: 3D Printing
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