The outfit said in February it would accelerate its restructuring program and slash around 3,000 jobs by the end of fiscal 2016 and these new cuts are on top of the old ones. In fact HP has not said where the axe will fall.
HP Chief Executive Dion Weisler said the market continued to be volatile, facing pressures and uncertainties because of a bad case of “challenged core markets” and “fluxing macro-economic conditions”. We had a bad case of fluxing macros earlier in the year and could not get off the bog, HP has our sympathy.
HP is raising its quarterly dividend by seven percent, HP also said it would increase its share buyback program by $3 billion.
The company expects restructuring and other charges of $350 million to $500 million and the move is expected to generate gross annual run rate savings of $200 million to $300 million beginning in fiscal 2020, HP said.
According to research firm Gartner, worldwide PC shipments in Q3 fell by 5.7 percent, the eighth consecutive quarter of PC shipment decline. Gartner also said that this is the longest duration of decline in the history of the PC industry.