HP has announced a restructure plan that will see its global headcount reduced by up to 9,000 employees.
In its fiscal 2020 outlook, HP revealed that this will be in order to "simplify its operating model and become a more digitally enabled company".
The cut in the headcount will be a combination of "employee exits" and voluntary early retirement with the process expected to be completed in fiscal 2022.
The restructure could cost the company up to US$1 billion, with approximately US$100 million in fiscal Q4 of 2019, US$500 million in fiscal 2020 and the rest split between fiscal 2021 and 2022.
HP estimates that these actions will result in annualised gross run rate savings of about US$1 billion by the end of fiscal 2022.
“We are taking bold and decisive actions as we embark on our next chapter,” said Enrique Lores, incoming president and chief executive officer at HP.
“We see significant opportunities to create shareholder value and we will accomplish this by advancing our leadership, disrupting industries and aggressively transforming the way we work.
"We will become an even more customer-focused and digitally enabled company that will lead with innovation and execute with purpose," Lores added.
In August, HP announced CEO Dion Weisler's plans to leave the company and move back to Australia due to a "family health matter".
HP president of imaging, printing and solutions business Enrique Lores was appointed Weisler's replacement effective 1 November.
HP Australia was unable to comment on local numbers.
Back in August, HP announced its new global operating model to come into effect on 1 November.
HP is moving from a current structure built around three large regions to a single commercial organisation. The way to do that would be reducing the number of management layers and moving closer to its costumers.
The new commercial organisation will be led by Christoph Schell in the role of chief commercial officer. Reporting into Schell will be 10 geographic markets, each led by a managing director.
There will also be global Centres of Excellence to drive the required digital transformation in HP's go-to-market efforts.