This plan could backfire spectacularly if HP's competitors don't follow suit, and instead choose to undercut it on hardware pricing. The changes will save HP $1 billion annually over the long haul, the company said.HP continues to innovate in the PC and printer markets. HP Inc. layoffs will trigger 7,000 to 9,000 staff cuts from late fiscal 2019 through fiscal 2022, the PC and printer giant says. In 2018, HP announced the layoff of 5,000 workers as a part of its restructuring plan. That part is now known as Hewlett Packard Enterprise. About $100 million worth of those charges will show up in Q4 2019; another $500 million of charges will be spread across fiscal 2020; the remainder will be split between fiscal 2021 and 2022.HP Inc's business model in printing is no longer working, so it's pivoting: The era of selling printers cheap is mostly over.The dividend will also get some love in fiscal 2020 with a 10% boost.
HP expects its $1 billion in restructuring expenses to be spread out, with $100 million in the fourth quarter of 2019, $500 million in 2020, and the remaining $400 million split between 2021 and 2022. will cut 7,000 to 9,000 employees as part of a restructuring that will stretch from late fiscal 2019 through fiscal 2022, the PC and printer giant confirmed today.
HP Layoffs 2019: New CEO Plans Up to 9,000 Job Cuts William White 10/4/2019. In reality, its plan is a mix of heavy cost-cutting, throwing money at shareholders, and shifting away from a business model that's clearly no longer working.HP expects to eliminate 7,000 to 9,000 employees worldwide as part of its fiscal 2020 restructuring plan, through a combination of layoffs and voluntary early retirements. We will become an even more customer-focused and digitally enabled company, that will lead with innovation and execute with purpose.”The announcement contained timely market jargon, describing how HP will become more “digitally enabled” while “disrupting industries.”“I’m proud of the progress we have made across our business with cutting edge innovation, disciplined execution and a purpose driven culture. HP had roughly 55,000 employees as of Oct. 31, 2018, so …
by Joe Panettieri • Oct 3, 2019 HP Inc . HP will allocate at least 75% of its free cash flow -- forecast to be at least $3 billion -- to dividends and share buybacks combined.HP expects to produce GAAP earnings per share between $1.98 and $2.10 in fiscal 2020, which includes one-time charges. HP added $5 billion to its existing share repurchase authorization on Sept. 30, bringing the total available to $6.7 billion. Even if the plan does work out, it seems unlikely that the lost profits from high-margin supplies sales will be fully offset by additional profits from hardware sales. The layoffs are part of an ongoing restructuring plan, the PC maker said. Nevertheless, the hardware-driven business missed out on most of the big digital transformation trends of the past decade — particularly cloud, mobile, managed and subscription services.“We are taking bold and decisive actions as we embark on our next chapter. 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. HP Inc 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. Today in History: June 19. HP Inc.'s stock is down 10% so far this year, while the benchmark Standard & Poor's 500 index is up 16%.
HP announced these layoffs as a part of its restructuring efforts. While the stock now trades for around 8 times that earnings guidance, a low PE ratio means nothing if those earnings aren't sustainable. Returns as of 07/30/2020. Layoffs at HP Inc. could impact as much as 16% of the tech company's workforce, as its once lucrative printer and ink business is "melting."