According to foreign media reports, the world's largest PC maker Hewlett-Packard on Tuesday predicted that as part of the company’s ongoing restructuring, the company will lay off about 4,500 to 5,000 company employees before the end of fiscal year 2019, or two years before the company announced The restructuring plan has more than 1,000 people.
HP disclosed in a regulatory filing on Tuesday that the company will generate approximately $700 million in pre-tax restructuring charges for layoffs, which is an increase from the original estimate of $500 million. On the conference call held on May 29, HP Gao The regulators stated that they are expanding the scale of layoffs starting from FY2017, but did not provide specific details. As of October 31, 2017, HP-based Palo Alto had 49,000 employees, which means The layoffs will account for about 10% of the total number of HP employees.
In public news, as early as October 2016, HP had a layoff plan, when the HP board of directors authorized the approval of a restructuring plan to be implemented in the next three years. It is planned to lay off 3,000 to 4,000 people. The layoffs are designed to help HP face PC computers. With the weak demand of the printer market, we can better control the cost. According to the plan, the layoffs include about 1,000 outsourcing jobs.
According to HP’s previously announced earnings disclosure, the company’s net revenue for the fiscal second quarter of fiscal year 2018 as of April 30 was US$14.03 billion, an increase of 13% from US$12.385 billion in the same period of the previous year, and year-on-year growth at fixed exchange rates. 10%; Operating profit rate was 6.9%, up 0.3% from 6.6% in the same period of last year; Net profit was $1.058 billion, 89% up from $559 million in the same period of last year; Non-US GAAP net profit It was US$798 million, a 16% increase from the US$685 million in the same period of last year.
It is mentioned here that HP was split from the original HP PC and printer business in 2015. In the HP spin-off that year, the newly formed HP Inc. focused on consumer-oriented hardware (hardware ) Business, including sales of personal computers (PCs) and printers, while HP Enterprise, another spin-off company, focuses on the operation of corporate data centers, software (software) and service departments.
HP's PC business has been performing well despite the current sluggish demand for the personal computer market, but the company's sales have continued to grow. Market research firm IDC previously issued a report that the first quarter of 2018, HP PC shipments were 1367.6 Million, ranking first in the global rankings, increased by 4.3 from the 13.18 million units in the same period of last year, and its global market share increased from 21.7% in the same period last year to 22.6%. Lenovo ranked second in the first quarter of this year's PC Shipment volume was 12.305 million units, which was basically the same as 12.3 million units in the same period of last year, accounting for 20.4% of the global market share, compared with 20.4% in the same period of last year. Relatively speaking, HP still maintained relative to other industries in the first quarter of this year. Competitor's lead, and the company has shown growth in all markets except Latin America.
In addition, HP's printer business also provided the impetus for its profit growth. After integrating Samsung Electronics' related departments, the company sold more expensive equipment to corporate customers. In terms of stock price, HP's stock price has been in the past 12 months. In the increase of 25%.
Since October 2016, Hewlett-Packard’s restructuring layoffs have continued. The number of more than 1,000 people planning this time clearly indicates that it is necessary to continue layoffs in order to achieve compliance. From the above data, it appears that the layoffs at HP’s restructuring plan do not Even help, but sadly, it also means that there will continue to be thousands of people unemployed.