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HP to lay off up to 9,000 employees by fiscal 2022

HP Inc. plans to cut about 7,000 to 9,000 jobs by fiscal 2022, through employee exits and voluntary early retirement, as part of a restructuring plan announced Oct. 3 to "simplify" its operating model.

Enrique Lores, who will be replacing Dion Weisler as CEO on Nov. 1, said the company is taking this "bold" step to improve its focus on customers and digital reach.

The computer maker said the restructuring would cost the company about $100 million in the fourth quarter of fiscal 2019, $500 million in fiscal 2020, and about $400 million across 2021 and 2022.

HP estimates an annualized gross run rate savings of about $1 billion with the reduction in headcount.

The company's board of directors on Sept. 30 sanctioned $5 billion for repurchases of common stock, HP said.

HP estimates EPS of about $1.98 to $2.10 in fiscal 2020, in GAAP terms, and about $2.22 to $2.32, in non-GAAP terms. The company is forecasting free cash flow of about $3 billion in 2020. The company also raised the dividend by 10%.