HP India Likely To Cut 500 Jobs In The Country To Reduce Costs
Anita - Oct 11, 2019
HP plans to fire 7,000-9,000 employees across the world by the year 2022 as part of its global restructuring plan to cut expenses.
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HP India seems to be planning on cutting almost 500 jobs in the country. The move belongs to its global restructuring plan, according to analysts.
This personal computers and printers manufacturer announced last week that it would fire 7,000–9,000 personnel across the world by the year 2022, following the operation restructuring planned to reduce expenses.
The cost savings plan would also impact HP India. In addition, it is apparent that the growth of the PC business in India was slowing.
“There will be job cuts here. They have discontinued some models and PC growth is slowing, aside from government project orders which are not consistent,” an HP’s representative said.
So far, the company hasn’t revealed the exact number of jobs that will be cut in the country.
“This is a global restructuring and we’re not breaking down numbers by site or location,” said HP.
This announcement comes one month before Enrique Lores takes over as a new CEO from the current CEO Dion Weisler.
According to The Head Hunters India’s CEO Kris Lakshmikanth, HP India will have to cut 500 jobs. Although India is considered a focus market for the company, the team here will still witness the effect of the global restructuring plan.
Enrique Lores has estimated to save about US$1 billion by 2022.
"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," said Lores.
The company also claimed that the global restructuring plan isn’t limited to one particular geographical area and it is also not specific to a certain location. It is known that HP currently has around 55,000 employees globally. HP anticipated that with its current business condition, the company is estimated to create a free cash flow of US$3 billion at minimum for the next fiscal year.