HP cuts up to 4,000 jobs worldwide

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US computer company HP Inc has said it expects to lay off 3,000 to 4,000 jobs over the next three years as it works to trim costs.

The hardware business of the former Hewlett-Packard announced the plans as part of a larger restructuring effort.

The maker of printers and personal computers continues to struggle with a subdued market, sending its shares down 1.3 percent in extended trading.

The company expects restructuring and other charges of $350 million to $500 million and the move is expected to generate gross annual run rate savings of $200 million to $300 million beginning in  2020, HP said.

 

HP Chief Executive Dion Weisler said the market continued to be volatile, facing pressures and uncertainties.

Dion Weisler, the company’s president, said in a statement:

“I’m proud of the progress we have made in our first year as the new HP. Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey,”

“Our core markets are challenged and macro economic conditions are in flux right now,”

The job cuts come as sales of personal computers around the world continue to decline.

Hewlett-Packard has in the past seen profits hit by declining sales of personal computers and has already had tens of thousands of job cuts in recent years.

This isn’t the first time in recent memory that HP has laid off employees. Earlier this year, HP said it would speed up layoffs and let 3,000 employees loose by Christmas. The company currently employs about 50,000 people.

HP shares have gained 25 per cent this year up to Thursday’s close.

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