In crisis in the printer market, HP will lay off up to 9,000 people

THE HP announced this week the decision to reduce its workforce by up to 16%. This means that between 7,000 and 9,000 of the company’s 55,000 employees are expected to lose their jobs. One reason for such a drastic decision is the company’s shrinkage in one of its most important markets: that of printers.

In fact, this is the beginning of a restructuring within HP. Current CEO Dion Weisler will step down from his post since 2015 (when HP split from Hewlett Packard Enterprise) for health reasons. The changes will be led by Enrique Lores, an executive who will take over as CEO from November 1st.

The process will be promoted gradually. HP’s expectation with the restructuring is to save about US $ 1 billion by the end of fiscal year 2022, this only with the reduction of jobs.

To this end, the company will promote layoffs on a global scale and, when appropriate, encourage early retirement of employees.

HP printer

In a conference, Enrique Lores said that this is one of the most difficult decisions that HP had to make, but that the measure is absolutely necessary for the future of the company.

This future is related to a change in direction. Like giants like Microsoft and Apple, HP intends to prioritize services instead of just dedicating itself to supplying equipment or software.

This decision was weighed by the drop in sales that the company has been registering in the printer segment – some analysts even say that HP’s printing division is a “melting ice cube”.

Despite the shift in focus, HP will not put the printer market aside. One of the strategies to be adopted from now on is to increase the prices of printers that can be used with cartridges of other brands. Another is to employ technologies that ensure that cheaper printers only accept HP cartridges.

With information: Bloomberg.

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