A slew of companies have announced major corporate restructurings to streamline operations and cut costs. Restructurings are often accompanied by facility closures, asset sales and job cuts. Let’s take a look at a few companies that have announced an overhaul of their businesses this year:
On Thursday, HP Inc. (NYSE: HPQ) announced a restructuring plan for fiscal year 2020 in order to simplify operations and focus more on software and services. As part of this plan, the company expects to reduce its global headcount by around 7,000-9,000 employees.
HP expects total costs of the restructuring to reach $1 billion and estimates annualized gross run rate savings of about $1 billion by the end of fiscal year 2022.
This week, retailer Kroger (NYSE: KR) announced an extensive workforce reduction as part of plans to restructure its operations. It seems the company might not be able to achieve the goals outlined in its recent quarterly report.
In August, Kraft Heinz (NYSE: KHC) disclosed that it intends to eliminate approx. 400 positions as part of its restructuring activities this year, 200 of which have already been completed in the first half. The company incurred expenses of $41 million in the first half of this year related to restructuring programs.
In February, PepsiCo (NASDAQ: PEP) said it plans to generate productivity savings of at least $1 billion annually through 2023 through restructuring actions that will help the company adopt new business models and increase automation. The company estimated that it would incur pretax charges of approx. $2.5 billion through 2023 as part of this restructuring.
In January, Ford Motor Company (NYSE: F) announced a global restructuring which included job cuts, factory closures and the production stoppage of certain vehicle models, particularly in Europe. The entire effort is expected to cost $10 billion over the next five years.