HP cuts up to 4,000 jobs worldwide

The hardware business of the former Hewlett-Packard announced the plans as part of a larger restructuring effort.

It is hoped the cuts will generate some $200m (£163m) to $300m in annual savings for the firm, but they are expected to cost up to $500m in charges.

HP also issued a lower-than-expected earnings guidance for next year.

The company said it expected adjusted profit for the fiscal year 2017 to be between $1.55 and $1.65 per share.

Hewlett-Packard split into two businesses last year: HP Inc, which focuses on printers and computers; and Hewlett Packard Enterprise, which sold its software business to focus on data storage.

"I'm proud of the progress we have made in our first year as the new HP. Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey," Dion Weisler, the company's president, said in a statement.

The job cuts come as sales of personal computers around the world continue to decline.

Earlier this week, research company Gartner said PC shipments declined 5.7% in the third quarter of 2016 compared with a year earlier.

Hewlett-Packard has in the past seen profits hit by declining sales of personal computers and has already had tens of thousands of job cuts in recent years.

(BBC)