Global printer supplier HP has confirmed plans to trim its international workforce by eight per cent, with some 4000 jobs expected to be cut over the next three years.
The group says the staff cull will take place between 2017 and 2019, resulting in an overall cost reduction of $200-$300m by 2020.
Workforce changes have not been targeted to a particular country, and are set to vary in each location depending on ‘local legal requirements and consultations with staff’. There is no indication yet of the impact on Australia.
However most of the focus is likely to be on the consumer market rather than commercial. HP is the world’s biggest wide format printer developer, and owns the HP Indigo digital press, which is market leader, with both market sectors continuing to grow.
At drupa it made its biggest ever investment on a trade show, and was the biggest single exhibitor, taking the whole of Hall 17.
HP revealed the plans in a filing to the New York Stock Exchange (NYSE) alongside its 2017 fiscal financial outlook – which it estimates will bring a cash flow increase of $300m from $2.3bn to $2.6bn.
The tech giant did not disclose if this forecast was contingent on its staff reduction.
“On October 10, 2016, the Board of Directors of HP Inc. approved a restructuring plan that it expects will be implemented through fiscal 2019 and is expected to generate gross annual run rate savings of approximately $200 million to $300 million beginning in fiscal 2020,” says HP in its investor statement.
“As part of the plan, HP expects approximately 3,000 to 4,000 employees to exit between fiscal 2017 and fiscal 2019. The changes to the workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate.”
According to HP’s company website, the press supplier employs a global workforce of 50,000, making the 4000 slashed jobs a staff shrinkage of eight per cent.
“Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey,” says HP CEO Dion Weisler.
“We are confident in our strategy and believe it will continue to produce reliable returns and cash flow, while also enabling HP to invest in differentiated innovation and long-term growth.
Although our markets remain very challenged, we are committed to innovating in the core and continue to see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitization of manufacturing though our leading 3D printing solutions,” he adds.
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