HP Inc to cut about 7,000 to 9,000 jobs in restructuring push

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© Reuters. The logo for The Hewlett-Packard Company is displayed on a screen on the floor of the NYSE in New York© Reuters. The logo for The Hewlett-Packard Company is displayed on a screen on the floor of the NYSE in New York

(Reuters) – Personal computer maker HP Inc (NYSE:) said on Thursday it will cut about 7,000 to 9,000 jobs as part of its fiscal 2020 restructuring plan.

HP estimates that the plan will result in annualized gross run rate savings of about $1 billion by the end of fiscal 2022, it said.

The company had about 55,000 employees worldwide as of October 31, 2018, according to a filing with the U.S. Securities and Exchange Commission.

HP expects to incur labor and non-labor costs of about $1 billion in connection with the restructuring, it added.

“We are taking bold and decisive actions as we embark on our next chapter,” Enrique Lores, the company’s incoming chief executive officer, said.

“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.”

Lores will take over the CEO position on Nov. 1 from Dion Weisler.

HP also said it expects to generate free cash flow of at least $3 billion during its fiscal year in 2020 and planned to increase its quarterly dividend by 10%.

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