Last year, HP had originally announced the termination of around 1,200 jobs by 2016, as the company split into two.
Now, reports have emerged that the company is accelerating its restructuring programme and as such, nearly 3,000 workers will leave the company by the end of this year.
The restructuring will result in charges and associated cash payments of about US$300 million in the current year, the company said.
Fortune reported that in a conference call with analysts on Wednesday, HP executives said that the tough market altered HP’s plans.
“The recently spun off maker of printers and PCs said that its fiscal first quarter revenue fell 12% year over year to $12.2 billion because of weak sales,” the article from Fortune stated.
It added that according to HP’s chief financial officer Catherine Lesjak, the layoffs should save the company roughly $300 million by the beginning of 2017.
“We have a clear strategy that leverages our strengths, and we are focused on execution, taking cost out of the business and delivering innovations that will amaze our customers and partners,” said Dion Weisler, HP’s President and CEO in a press release issued by the company.
“Although we have some tough quarters ahead, I am confident in the future.”
According to Channel NewsAsia, revenue in the company’s personal systems business fell 13% in the first quarter ended Jan. 31, while it declined 17% in its printing division from a year earlier.
It highlighted PC sales in HP have been falling sharply worldwide, and the launch of Windows 10 has so far failed to rekindle demand.
Printer demand was also identified as being 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,” Channel NewsAsia stated.
“Analysts on average were expecting 39 cents, according to Thomson Reuters I/B/E/S.”