HP Plans To Cut Up To 4,000 Jobs Over Next 3 Years Amid PC Slump (bloomberg.com)

Yesterday, it was reported that the PC industry is on a two-year downslide as PC shipments have declined for eight consecution quarters. Today, HP announced it will cut between 3,000 and 4,000 jobs over the next three years due to the PC slump. Bloomberg reports: The company will eliminate positions across the board, Chief Executive Officer Dion Weisler said on Thursday. The comments came as HP held its analyst meeting in New York. The reductions could include 1,000 jobs being outsourced if the number of positions edges close to 4,000, Chief Financial Officer Cathie Lesjak said. Weisler is searching for additional ways to drive profitability after his PC company gained independence last year from Hewlett Packard Enterprise, which sells corporate tech gear. Earlier this year, Weisler said HP would need to accelerate a plan announced in 2015 to eliminate about 3,000 positions over three years. Instead, those reductions are to be completed this fiscal year. HP has about 50,000 employees now. HP said the newest job cuts will generate cost savings of about $200 million to $300 million annually starting in fiscal 2020. The Palo Alto, California-based computer maker expects to take $350 million to $500 million in charges in connection with the plan, and of that tool about $200 million will be labor costs, according to a regulatory filing.

Comments

Re:Moores Law

[Hadlock]

My buddy bought a second hand, Xeon 16 physical, 32 logical core workstation with 96GB ram for under $1000. It's sandybridge era, but hot damn there's plenty of cores to spread the work around. We estimate that even though his workflow involves six different VMs, he won't need to upgrade his personal machine again for probably five years. I was considering buying one too, but I think I'll settle for a brand new i7 quad core XPS 15 with a 1050 GPU for ~$1800, which ought to last me four years or so. Maybe more. My 2012 era i5 thinkpad laptop (ivy bridge) is still faster than anything I need it for, but the screen needs updating, and to be larger as my eyesight starts to deteriorate as an adult and replaces my old "fire breathing" desktop from 2010. I'm a power user and barely find reason to upgrade my hardware, I can only imagine how long the average user can go between upgrades these days.