HP will raise prices of printers that accept third-party ink. Photo: DANIEL NAUPOLD/dpa | usage ... [+]
Topline: Incoming CEO Enrique Lores announced Thursday that computing and printer giant HP will slash 13% to 16% of its workforce in a major restructuring.
- HP will cut 7,000 to 9,000 jobs of its total of 55,000 as part of a major restructuring that will save $1 billion by the end of 2022, the company said.
- HP will also increase its dividend by 10%.
- Free cash flow will be at least $3 billion by 2020.
- HP shares fell 3.8% after hours.
The changes are being shepherded by Lores, who will start as CEO on November 1. Current CEO Dion Weisler announced he was stepping down in August for family health reasons.
The restructuring is part of a “new chapter” for HP, Lores told Bloomberg. His plan for the company includes changing how the company prices its printers. HP will start raising prices for printers that are compatible with third-party ink cartridges, but keep them lower for printers that work only with HP’s own ink products.
