HP has announced that it plans to lay off up to 4,000 people in the coming three years. The mass retrenchment plan is part of the company's restructuring effort. HP is expected to save $200 to $300 million in annual expenses. However, the layoffs will also cost the company up to $500 million in related charges.

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The news of HP's job cuts comes amid the decline of global shipment of PCs. According to a report released by Gartner, PC shipments dipped by 5.7 percent in the third quarter of the year. HP focuses on the computer and printer market, and thus is likely to be hard hit by drop in PC shipments.

The retrenchment will be made across the board. HP may also decide to outsource up to 1,000 jobs. HP CEO Dion Weisler had stated that the original plan of laying off 3,000 employees needed to be accelerated. He also said that the company is required to become faster and more efficient. Weisler emphasized the need to focus on the reinvention. 

HP Inc. was formed last year after Hewlett-Packard was divided into two businesses. HP Inc. manages the company's hardware business including printers and computers while Hewlett Packard Enterprise focusses on data storage. Weisler said that the company has made solid progress in its first year. HP expects its fiscal 2017 adjusted profit to be in the range of $1.55 and $1.65 per share. The company is also looking to increase its quarterly dividend by seven percent to 13 cents a share.