HP plans to invest $1 billion to cut 9,000 jobs that will save $1billion and challenge the third party supplies market.
Just a month ahead of taking the reins at HP the incoming CEO Enrique Lores announced that the dominant OEM in the office printer and computer sector will slash the 55,000 global workforce by up to 9,000 people in a major restructuring starting in Q4 of 2019.
HP estimates total costs in connection with the layoffs and restructuring plan of $1.0 billion (€0.91 billion) and estimates that by the end of 2022 they will save about $1.0 billion (€0.91 billion).
A wake-up call for the office printing aftermarket as their “Advance, Transform, Disrupt” strategy HP is taking on the third party suppliers of consumables. Talking to Bloomberg, HP plans include changing “how the company prices its printers. HP will start raising prices for printers that are compatible with third-party ink cartridges but keep them lower for printers that work only with HP’s own ink products.”
“We are taking bold and decisive actions as we embark on our next chapter,” said Enrique Lores, incoming President and Chief Executive Officer, HP Inc. “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. We will become an even more customer-focused and digitally enabled company, that will lead with innovation and execute with purpose.”
“I’m proud of the progress we have made across our business with cutting edge innovation, disciplined execution and a purpose driven culture,“ said Dion Weisler, President and Chief Executive Officer, HP Inc. “I have no doubt our team will keep raising the bar under Enrique’s leadership.”
