HP Inc. has announced plans to cut its global workforce by thousands over the next three years, reducing it by about 16%.
HP said it plans to reduce its number of employees by between 7,000 and 9,000 workers "through a combination of employee exits and voluntary early retirement." HP expects to finish the workforce reduction by fiscal year 2022.
According to an HP spokesperson, the company currently employs 55,000 people globally and the cuts could account for up to 16% of its current workforce. The restructuring would cost HP approximately $1 billion in total.
The decision to reduce the global workforce comes amidst a period of changes at HP. In August, HP president and chief executive officer (CEO) Dion Weisler, announced that he will be stepping down.
Weisler announced his resignation in August and cited "family health matter" as the reason for his decision. The announcement follows the release of the company's third-quarter 2019 earnings report. HP shares fell by around 5% after both announcements.
Enrique Lores, president of HP’s imaging, printing and solutions business, will become president and CEO of the company effective November 1. Weisler will remain at the company through January 2020 to help Lores transition into the role. He will be returning to his home in Australia after the transition but will retain his seat on the board of directors until the next annual stockholders meeting next spring.
Weisler has served as president and CEO of HP since 2015 after it separated from the corporate hardware and services business and is currently under HP Enterprise.
Lores claimed that the company is "taking bold and decisive actions as we embark on our next chapter." Lores added: "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."
In 2018, the company made the announcement that around 4,500 to 5,000 employees are expected to leave company by the end of fiscal year 2019
