HP printer software maker HP loses $1.6 billion in 2018, layoffs expected
HP (HPQ) announced on Tuesday it will file for bankruptcy protection and lay off 1,400 employees in 2018 as part of a restructuring plan that will also see the company slash its workforce by more than 5 percent.
The layoffs are expected to take place in the first quarter of 2019.
“We believe we have reached a significant milestone in our ability to create a business-critical product and service offering, but we cannot sustain our current level of profitability without a substantial turnaround,” said CEO Meg Whitman in a statement.
“In the past few years, HP has become more focused on delivering innovative and profitable products to customers.
We believe we can deliver a product that is better than it was 10 years ago and the turnaround we are announcing today will help us meet this goal.”HP announced in December that it was seeking a $3 billion bailout from the U.S. government and other investors.
The company said at the time that it had made a series of strategic investments, including the acquisition of the digital inkjet printer business in the U, as well as the acquisition and sale of printer equipment and software.HP also announced that it plans to shut down its print printing business in 2018.
It has been the subject of multiple government investigations into its business practices, including allegations of wage theft and illegal drug sales.
HP has denied any wrongdoing.