HP Inc is accelerating plans to cut staff and trim costs, revealing that 3,000 workers will be let go within the next 12 months.
As part of the company’s restructuring plans, announced last year, the tech giant was expected to cut as many as 3,300 jobs over the next three years, with 1,200 staff set to leave in 2016.
But in a change of tack, HP Inc CEO, Dion Weisler, has pushed ahead with the layoffs, telling analysts that the company wasn’t going to wait and instead will make 3,000 cuts in 2016.
“We are accelerating the restructuring program also announced at SAM by increasing the fiscal 2016 employee reductions to approximately 3,000,” Wiesler sais.
“I believe there may be even more opportunity to reduce cost and streamline processes, and we will share details when finalised.”
Backing up Wiesler’s comments, HP CFO, Cathie Lesjak says the tech giant has already cut 400 people during its first quarter, meaning 2,600 more staff will be axed by the end of the year.
When speaking to analysts, Lesjak expects the layoffs to cost $US300 million and save the company the same amount starting next year.
“This move is basically HP Inc embracing the tough pricing environment and shifting their focus to building their portfolio,” said Shannon Cross, Research Analyst, Cross Research, when speaking with The Times of India.
The restructuring follows reports that HP Inc posted revenue declines of 12 percent, compared to the same period last year.