[Source: Wiki ]
Charles Goulding of R&D Tax Savers examines HP’s announced mass layoffs and hope for its 3D printing business.
At 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 5 billion dollars. The layoff reflects challenges in both their core 2D printing business and their PC businesses.
Hopefully, the growing 3D printing segment will now represent a larger portion of the overall printing segment and justify higher corporate resource allocation.
In general, the analysts are not enthusiastic about large stock buybacks. Although stock buybacks can in certain cases be a smart and appropriate financial strategy, they typically indicate that the enterprise is incapable of identifying 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.