Restructuring: HP will lay off 16 percent of its employees


The hardware company HP will welcome a new CEO from 1 November 2019. Enrique Lores will take over for Dion Weisler. One of his first acts: 7,000 to 9,000 employees are fired – about 16 percent of the global workforce of 55,000 employees. The aim is "to be even more customer-focused and digitally better positioned", This announces the group in one press release at.

Job market

  1. i-SOLUTIONS Health GmbH, Bochum
  2. Stadtwerke M√ľnchen GmbH, Munich

By the end of 2022 to be saved so a billion US dollars. It also expects US $ 3 billion in liquidity in 2020. Net earnings per share are expected to reach a maximum of $ 2.10 in the same year and dividends will increase by 10% for all shareholders. However, such a massive restructuring will initially cost a billion dollars.

"We take courageous and decisive action as we embark on the journey to our next chapter"says Lores. Some of the employees are actively dismissed by the company. Other employees go in one "voluntary early retirement"says the press release.

Dismiss employees and buy back shares

The significant downsizing of the workforce is not the company's only strategy. Five billion US dollars should be made available to buy back shares of shareholders. In the future, this should give the company greater decision-making power in investment projects.

Currently the sinks share however, the value of HP Incorporation (HP Inc.) was 5.16 percent in one day. Currently, they are $ 17.45 per share. It will be seen if restructuring can reverse this trend.