Hewlett-Packard has said it is cutting up to 4,000 jobs over the next three years, as it faces down a challenging market. Shares in the maker of printers and personal computers slipped 1.3 percent in after hours trading after the announcement.
"Our core markets are challenged and macro economic conditions are in flux right now," HP Chief Executive Dion Weisler said, adding that the company is facing pressures and uncertainties, Reuters reported.
After the conglomerate's restructuring last year, HP accounts for the hardware business of former Hewlett-Packard Co.
"Although our markets remain very challenged, we are committed to innovating in the core and continue to see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitisation of graphics and manufacturing through our leading 3D printing solutions," Weisler added.
The company also gave a cautious outlook ahead. It said it could generate $2.3 billion to $2.6 billion in free cash flow in the year ending in October 2017. According to Reuters FactSet, analysts had made an average estimate of $2.76 billion for fiscal 2017 and $2.27 billion in the year ending in October.
HPs board said the current restructuring will save $200 million to $300 million from 2020. The details of the plan were submitted in a filing to the Securities and Exchange Commission on Thursday.
The job cuts will "vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate," the statement added.
HP currently has about 50,000 employees worldwide. HP said last month it was acquiring Samsung's printer business in a a $1.05 billion deal.
