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HP stock tumbles after the company announces plans to cut up to 9,000 jobs

Key Points
  • HP announced it will cut between 7,000 and 9,000 jobs by the end of fiscal 2022.
  • Shares of the PC maker fell on Friday following the announcement.
  • The layoffs are part of a broader restructuring plan aimed at cutting costs.
Hewlett-Packard Co. products are for sale in Shanghai, China, on Thursday, Nov. 12, 2009.
Qilai Shen | Bloomberg | Getty Images

Shares of PC maker HP Inc. slid 9.6% on Friday after the company said Thursday it will lay off as many as 9,000 employees, or approximately 16% of its workforce. Shares reached a new intraday low for the year of $16.46.

In a securities filing, HP said it would cut between 7,000 and 9,000 jobs by the end of fiscal 2022. A portion of those employees are expected to accept voluntary buyouts. HP has about 55,000 employees worldwide, according to FactSet.

The layoffs are part of a broader restructuring plan that's expected to help the company save $1 billion a year by the end of fiscal 2022, the company said. The company will take roughly $1 billion in restructuring charges beginning in the fourth quarter.

Enrique Lores, HP's incoming CEO, told Reuters that the reorganization will help the company advance toward its "next chapter."

Lores was named president and CEO of HP in August after Dion Weisler stepped down from the role "due to a family health matter." Lores will become CEO of the company effective Nov. 1.

HP also stated in the filing that it expects to report adjusted earnings between $2.22 to $2.32 per share for fiscal 2020. By comparison, analysts are expecting earnings of $2.23 per share, per FactSet.

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Breaking: HP CEO Dion Weisler to step down, Enrique Lores to replace him
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