HP Will Fire 9000 Employees From ‘Back End’ Jobs; Printer Business Will Be Massively Transformed
Hewlett-Packard, or HP has announced termination of 9000 employees from their company’s payroll.
This is one of the biggest layoffs announced by this hardware and software behemoth in years.
HP employs 55,000 employees, and this layoff represents 16% of their overall workforce.
9000 HP Employees To Be Fired
Starting November, Enrique Lores will take over as the CEO of HP, replacing Dion Weisler, who was the CEO since 2015 when HP split with Hewlett Packard Enterprise Co.
Days before Lores takes over, HP has announced that 8000-9000 employees will be gradually as to leave, starting from November 2019 to 2020 end.
HP plans to spend upto $1 billion for firing 16% of its workforce, which will be used in severance packages and other employee benefits. $100 million will be spent in the last quarter of 2019, meanwhile $500 million will be spent next year.
In an interview, Lores had said, “We see ourselves starting a new chapter for HP and we will be announcing bold moves to support that statement,”
Which Jobs Will Be Terminated?
As per the reports coming in, most of the layoffs will happen in the backend jobs inside the company, for both hardware and software divisions.
We don’t have an exact number, but in India, HP employees more than 10,000 employees, and backend jobs is one of the critical job operations in India.
We are awaiting more details, as to how many jobs will be purged in India, as part of this massive job termination drive by HP.
HP shares have been down by 10% since the start of the year, and it went further down by 9.6%, as soon as the layoffs of 9000 employees was announced.
The Big Restructuring Of HP’s Printer Business
Printer business by HP has been their main revenue source for years, and under this new restructuring plan, this particular division will witness a massive transformation.
Interestingly, Lores, their new CEO was heading their printer business only.
As per the new business model, HP will now sell costly printers without any discounts, and then offer subsidized after-sale and managed printer services for their customers.
As of now, HP sells their high end printers at low costs, and then offer managed printer services and after-sale service at a premium.
PC and mobile printing business is a $485 billion annual market, and HP hopes to generate atleast $55 billion from 3-D printing and graphics printing in the near future.
We will keep you updated, as more details come in.