[Source: Wiki ]
Charles Goulding of R&D Tax Savers examines HPās announced mass layoffs and hope for its 3D printing business.
AtĀ the close of business on Thursday, October 2nd, HP Inc. announced a massive layoff of 7,000 to 9,000 workers, comprising up to 16 percent of their workforce.
Concurrently they announced a large stock buyback of up to 5Ā billion dollars. The layoff reflects challenges in both their core 2D printing business and their PC businesses.
Hopefully, the growingĀ 3D printing segment will now represent a larger portion of the overall printing segment and justify higher corporateĀ resource allocation.
In general, the analysts are not enthusiastic about large stock buybacks. Although stock buybacks can in certain casesĀ be a smart and appropriate financial strategy, they typically indicate that the enterprise is incapable of identifyingĀ superior organic growth alternatives. As the stock market analysts who follow HP Inc. digest this information and ask management more probing questions, we should all learn more in the coming weeks.
HP Inc. has greatly reduced its workforce in recent years which means there should be some excellent talent available in the market that the rest of the printer and PC industry can access.