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HP to Cut Up to 4,000 Jobs Over Three Years Amid PC Slump

Oct. 13, 2016
The reductions could include about 1,000 jobs being outsourced.

HP Inc. will cut about 3,000 to 4,000 jobs over three years to help bring costs in line with slumping demand in the market for computers and printers.

The company will eliminate positions across the board, Chief Executive Officer Dion Weisler said. The comments came Thursday during HP’s analyst meeting in New York. The reductions could include about 1,000 jobs being outsourced if the number of positions edges close to 4,000, Chief Financial Officer Cathie Lesjak said.

Weisler is looking for additional ways to drive profitability after gaining independence last year from Hewlett Packard Enterprise, which sells corporate tech gear. Earlier this year, Weisler said the company will need to accelerate a plan announced in 2015 to eliminate about 3,000 positions over three years. Instead, those reductions are to be completed this fiscal year.

HP has about 50,000 employees now.

"As technology improves and as we become a faster, nimbler company, you are always looking to become more and more efficient," Weisler said in an interview. "Efficiency wins the day. And when I think about the markets that we’re in, what’s important is that we remember to stay focused on the reinvention, the innovation that we’re driving."

The company also gave a forecast for the new fiscal year. Lesjak said adjusted profit per share would be $1.55 to $1.65, compared with analysts’ average estimate of $1.61, according to data compiled by Bloomberg. HP expects to increase its planned quarterly dividend by 7%.

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