HP Stock crashes down after the company announces plans to cut 9000 jobs
HP the giant PC maker has made a recent announcement that has to lead the company is losing its stock Price. The HP “Hewlett-Packard Company” crashes down its share price about 9.6% on Friday following the companies recent announcement which was released on Thursday.
The Stock price and shares of the giant Personal computer maker HP inc have slid 9.6% on Friday. This has happened mainly because of their Thursday announcement about the job cuts.
On Thursday HP has announced that it will cut down as many as 7,000 to 9,000 employees or 16% of its entire workforce. After the announcement, HP shares have reached the lowest ever share stock price in the year. It shares stand presently at $16.46.
Officially ” Hp gave a statement that it would lay off the jobs around 7000 to 9000 employees by the end of 2022. In those employees, some portion of them accepts voluntary buyouts.
According to the FactSet, Presently hp has around 55000 employees worldwide.
The reason behind the layoff’s decision is part of a broader restructuring plan which is expected to help the HP company to save whopping $1billion a year by the end of 2022.
As per the statement of Enrique Lores, HP’s latest CEO. The company will roughly take $1 billion in restructuring charges beginning from the fourth quarter of the financial year.
He told Reuters that reorganization will help the improvement of the company towards its “next chapter”.
Enriques Lores was named as the president and CEO of HP in August after the ex- CEO Dion Weisler stepped down from the CEO role. Dion Weisler stepped down due to family health matters.
Officially Enrique Lores will become CEO of the Company from Nov 1st onwards. Hp officials also stated that it is filing reports and they will adjust earnings between the $2.22 to $2.32 per share from the year 2020.
After analyzing and comparing, stock analysts are expecting earnings of $2.23 per share as per the FactSet. As it might get a good outcome for the company but its employees might face the typical consequences.
- Hp has announced it will cut down 7,000 to 9,000 jobs by the end of fiscal 2022.
- The Shares of this HP PC maker fell on Friday following the announcement which they released on Thursday.