HP Inc. is planning to decrease the size of its global staff by the thousands in the next three years.
According to the company, it plans to cut between 7,000 to 9,000 workers. It will use a combination of “employee exits and voluntary early retirement.” The cut in workforce will be complete by 2022.
According to one spokesperson, the company has 55,000 employees around the world. Doing the math, the reduction would account for as much as 16% of the whole workforce.
Meanwhile, the company believes it would spend around $1 billion for the restructuring.
The plan comes at a time when the company is in a flux. Last August, CEO and president Don Weisler announced that he was getting ready to quit the company by 2020.
Incoming president and CEO Enrique Lores said that the company is taking “bold and decisive actions.” He added that it currently sees significant opportunities to create shareholder value.
The company also unveiled its forecasts for profit, which it believes would fall between $2.22 to $2.32. Analysts are expecting $2.23 per share.
In after-hours trading, the stock fell more than 5%.
Meanwhile, its board boosted its share repurchasing plan to add $5 billion. In its existing plan, the company still has $1,7 billion. So far this year, its shares have declined 10%.
In fiscal 2020, it expects at least $3 billion free cash flow. It plans to return 75% or more of that money to shareholders.
The company’s woes include the falling sales in its printing business. This has been its major source of profit.
Along with tweaking financial metrics, it said it would change its printing unit to provide more services. The prices for printers that can use non-HP cartridges will increase. This aims to make more profits off of the hardware.