New HP CEO Enrique Lores is out to streamlines the company’s operations, which will involve reducing its workforce by as much as 16% over the next three years, according to an Associated Press report.
The report quoted the PC and printer supplier as saying it expects to reduce its headcount by 7,000 to 9,000 from its global workforce of about 55,000 by 2020. The moves are expected to save the company about $1 billion a year by the end of its 2022 fiscal year.
HP announced the job cuts Thursday at a meeting with Wall Street analysts that Lores chaired. Lores had been overseeing the HP division that includes selling ink for the company’s printers, before being named CEO last month, the report said.
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The workforce reductions come as the Palo Alto, California company finishes a three-year restructuring plan that included eliminating up to 5,000 jobs.
HP Inc. was created in 2015 when Hewlett Packard split its PC and printer operations from its businesses specializing in data-center hardware and business software. The business services division is now known as Hewlett Packard Enterprise.