Personal computer maker HP said on Thursday it will cut about 7,000 to 9,000 jobs as part of its fiscal 2020 restructuring plan.
Palo Alto, California-based HP estimates that the plan will result in annualized gross run rate savings of about $1 billion by the end of fiscal 2022.
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. The cost will be approximately $100 million in fiscal Q4 of 2019, $500 million in fiscal 2020 and the rest split between fiscal 2021 and 2022.
HP earlier announced fiscal 2019 third quarter net revenue of $14.6 billion, up 0.1 percent from the prior-year period.
“We are taking bold and decisive actions as we embark on our next chapter,” Enrique Lores, the company’s incoming chief executive officer, said.
Enrique Lores is becoming the CEO of HP on November 1 as the replacement for Dion Weisler, who held the CEO position since 2015. Enrique Lores is currently the president of HP’s Imaging, Printing and Solutions business.
“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,” Enrique Lores said.
HP 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 percent.
