HP Inc speeds up job cuts

HP logoThe maker of expensive printer ink HP Inc can’t get enough of job cuts, even though dividing the company into two was supposed to sort it out.

The outfit said it was accelerating its restructuring program and now expects about 3,000 people will exit by the end of fiscal 2016 instead of over three years as it announced in September.

HP had said it expected to cut about 33,300 jobs over three years, of which up to 3,300 were to be cut in what would become  HP inc. It said then that 1,200 people would leave the company by the end of 2016.

The restructuring will result in charges and associated cash payments of about $300 million in the current year, the company said.

HP Inc is the bit of HP that got the legacy hardware business, reported a near 12 percent drop in quarterly revenue, as it struggles with weak demand for PCs and printers.

Revenue in the company’s personal systems business fell 13 percent in the first quarter ended Jan. 31, while it declined 17 percent in its printing division from a year earlier.

PC sales have been falling sharply worldwide, and the launch of Windows 10 has so far failed to rekindle demand.

Printer demand has been hurt as corporate customers cut printing costs and consumers shift to mobile devices.

The company, which is reporting results independently for the first time since being spun off from Hewlett-Packard Co, forecast adjusted profit of 35-40 cents per share for its second quarter ending April 30. HP Inc maintained its 2016 adjusted profit forecast at $1.59-$1.69 per share.

The company’s earnings from continuing operations fell to $650 million in the first quarter from $770 million, a year earlier. Revenue fell to $12.25 billion from $13.86 billion.

All this was in line with analysts expectations.