HPQ HP Inc

   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)

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