HP says job cut will now target up to 5,000 employees

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US-based PC maker HP Inc said it is planning to cut 4,500 to 5,000 jobs by the end of fiscal 2019 as part of an ongoing restructuring plan, Reuters reported.

The company did not reveal specific detail on the job. HP has a strong presence in India, one of the major PC markets.

In October 2016, HP’s board had approved a restructuring plan to be implemented through fiscal year 2019, under which it had expected around 4,000 job cuts. In May, the devices company said it expected the number of job cut to increase by 1 to 2 percent.

The company employed 49,000 people as of October 31.

HP, formed in 2015 when the then Hewlett-Packard was spilt into two, said in a regulatory filing it now expects pre-tax charges of about $700 million related to the layoffs, compared with about $500 million forecast earlier.

HP estimates that about half of the expected pre-tax costs will relate to severance and the remaining costs due to infrastructure, non-labor actions and other charges.

When Hewlett-Packard split up, HP Inc focused on the consumer facing hardware business, including sales of PCs and printers, while Hewlett Packard Enterprise hosted the company’s data-center, software and services units.

HP, which has the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6 percent market share, reported sales of $14 billion in the quarter ended April 30.

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