HP Shares Slide After Company Plans Job Cuts, New Sales Model
October 04 2019 - 10:43AM
Dow Jones News
By Dave Sebastian
HP Inc. (HPQ) shares were off more than 8.5% to $16.82 Friday
after the company said it is shrinking its ranks by as much as
16%.
The restructuring plan could eliminate 7,000 to 9,000 jobs from
its roughly 55,000 workforce in the next three years, the company
said.
HP said the cuts would yield yearly savings of about $1
billion.
HP has been under pressure in recent quarters from a decline in
the printing-supplies business that was once its biggest
moneymaker. To help spur growth, it plans to offer new ways to sell
its products.
The company said it will still offer customers the option of
buying their discounted printers, but then will lock them into
buying ink from HP.
HP historically sold printers at a discount and then made money
on ink cartridges, not unlike companies that sell razors at a
discount and make their profit on the blades.
Several analysts on Friday slashed HP's price target.
Bank of America cut the technology company's price target to $16
from $17, citing the company's volatility in supplies growth.
Morgan Stanley, Credit Suisse and Loop Capital also cut their
price targets for HP.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
October 04, 2019 10:28 ET (14:28 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
HP (NYSE:HPQ)
Historical Stock Chart
From Aug 2024 to Sep 2024
HP (NYSE:HPQ)
Historical Stock Chart
From Sep 2023 to Sep 2024