HP isn’t out of the woods just yet. In an address to this year’s 2016 Securities Analyst Meeting, Dion Weisler, the President and CEO of the newly formed HP Inc., attempted to put a positive spin on a tricky situation.
“I’m proud of the progress we have made in our first year as the new HP. Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey,” he said. “We are confident in our strategy and believe it will continue to produce reliable returns and cash flow, while also enabling HP to invest in differentiated innovation and long-term growth.”
The growth the company’s top executive is hoping for, however, will involve some series restrictions. Among them is the fact that the company will be letting go some 3,000 to 4,000 employees over the next three years, according to a new filing with the SEC.
The details are still fairly vague, with the report noting that “changes to the workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate.”
As per the plan, the company anticipates savings of $200 million to $300 million per year starting in 2020, according to the paperwork. Prior to that, however, there will be $350 million to $500 million in charges for the company, including $200 million attributable to labor costs.
The numbers are a sizable chunk of a total workforce of around 50,000 people. Earlier this year, the company — which is one of two successors to technology giant Hewlett-Packard (alongside Hewlett Packard Enterprise) — announced plans to cut 3,000 jobs by year’s end.