By Andy Slawetsky – HP announced their 2020 fiscal outlook on Oct. 3. The press release included information on a restructuring plan that includes a global headcount reduction of 7,000 – 9,000 jobs, mostly through “employee exits” and “volunteer early retirement.”
This is the first big news to come out of HP since it was announced that Enrique Lores would take over for CEO Dion Wessler as President and CEO of the printing manufacturer.
According the HP press release;
Fiscal year 2020 restructuring plan
Today, HP Inc. announced a fiscal year 2020 restructuring plan to simplify its operating model and become a more digitally enabled company. The company expects to reduce gross global headcount by approximately 7,000-9,000 employees through a combination of employee exits and voluntary early retirement. The company estimates that it will incur total labor and non-labor costs of approximately $1.0 billion in connection with the restructuring and other charges, with approximately $100 million in fiscal Q4 of 2019, $500 million in fiscal 2020 and the rest split between fiscal 2021 and 2022. These actions are expected to be completed in fiscal 2022. The company estimates that these actions will result in annualized gross run rate savings of about $1.0 billion by the end of fiscal 2022.
SOURCE Industry Analysts Inc.