Major corporate lay-off: After Cognizant, HP India to fire 500 people in India

After Cognizant's announcement to cut headcounts, personal computers and printers maker HP has also decided to sack around 500 people as a part of their global restructuring plan. Last week, the company has announced a major restructuring plan as per which HP will fire 7,000-9,000 employees globally by 2022 as part of a restructuring of operations intended to cut costs. Financial daily, The Economic Times reported that HP's operation in India would also be impacted by the cost savings plan.

One of the person privy with the matter said, "There will be job cuts here. They have discontinued some models and PC growth is slowing, aside from government project orders which are not consistent." However, HP is yet to confirm the official number of people to be sacked by the analysts have estimated the number to be around 500. "(HP's) India team is likely to see 500 job cuts. Even though India is a focus area for HP, the India team will see the impact of the global measure," said Kris Lakshmikanth, CEO of The Head Hunters India.

Company's announcement to cut the headcounts has come just before seasoned HP veteran Enrique Lores taking over as chief executive from Dion Weisler. The incoming HP Inc President and CEO Enrique Lores have estimated to save $ 1 billion by the end of the year 2022.

"We see significant opportunities to create shareholder value and we will accomplish this by advancing our leadership, disrupting industries and aggressively transforming the way we work," Lores said last week.

HP has further argued that restructuring is not limited to a single geographical area and it is not specific to a particular location. Presently, HP is employing around 55,000 people across the globe. The company anticipated that with the current business environment, HP is estimated to generate a free cash flow of at least $3 billion for the fiscal year 2020.