HP sees up to 5,000 job cuts as part of restructuring plan

(Reuters) - HP Inc (NYSE: HPQ) now expects 4,500 to 5,000 employees to leave the company by the end of fiscal 2019 as part of an ongoing restructuring plan, the PC maker said on Tuesday.

In October 2016, HP's board had approved a restructuring plan to be implemented through fiscal year 2019, under which it had expected around 4,000 job cuts. In May, the company said it expected that number to increase by 1 to 2 percent.

The company employed 49,000 people as of Oct. 31.

HP, formed in 2015 when the then Hewlett-Packard Co was spilt into two, said in a regulatory filing https://www.sec.gov/Archives/edgar/data/47217/000004721718000026/hp-43018x10q.htm it now expects pretax charges of about $700 million related to the layoffs, compared with about $500 million forecast earlier.

HP estimates that about half of the expected pretax costs will relate to severance and the remaining costs due to infrastructure, non-labor actions and other charges.

When Hewlett-Packard Co split up, HP Inc focused on the consumer facing hardware business, including sales of PCs and printers, while Hewlett Packard Enterprise Co hosted the company's data-center, software and services units.

HP, which has the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6 percent market share, reported better-than-expected quarterly sales of $14 billion in the quarter ended April 30.

(Reporting by Sonam Rai in Bengaluru; Editing by Maju Samuel)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Singularity Future Technology closes $5M registered direct offering
• Elroy Air wins $46M U.S. Army contract for cargo drone system
• Werewolf Therapeutics to merge with Ambros in $150M private placement