SAN FRANCISCO – American information technology corporation HP Inc. on Thursday unveiled a broad restructuring plan that includes shifting its business model and cutting between 7,000-9,000 jobs globally over the next three years.
The corporate restructuring could imply as much as a 16-percent reduction of the company’s headcount.
Incoming President and Chief Executive Officer, Enrique Lores – who will be replacing current CEO Dion Weisler from Nov. 1 onward – said in a conference call that it was one of the toughest decisions that the company has ever had to take but stressed that it was necessary for HP’s future.
HP, which has a workforce of 55,000 people worldwide, made the move after seeing a significant dip in the production and sale of computers, printers and ink cartridges over the past few years.
According to Lores, the aim is to turn the company’s direction from traditional hardware to software and services, in line with the industry’s general trend and following in the footsteps of other tech giants such as Apple.
“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,” Lores said.
The company estimates that these job cuts – whether they will be layoffs or contract non-renewals was not specified – will save HP up to $1 billion over the next three years, which will presumably be re-invested in the firm’s renovation efforts.
On Aug. 22, during the presentation of HP’s fiscal year’s third-quarter report, Weisler announced that he was stepping down as CEO due to “a family health matter.”
He had been appointed the company’s chief executive in 2015, when the Hewlett-Packard Company announced it was splitting into two companies – HP Inc, which would take over the tasks relating to personal computers and printers, and Hewlett Packard Enterprise, focusing on providing computer services to companies.
Weisler will return to his native Australia, from where he will help Lores in the transition process until January 2020, after which he will remain in HP’s board until the annual shareholders’ meeting in spring.