HP (HPQ) announced several thousand job cuts along with a restructuring of its business on Thursday. The company said it will reduce its workforce globally by about 7,000 to 9,000 workers.

The move comes as HP looks to “simplify” its operating model to become a more “digitally enabled company.” Through the job cuts, which are expected to come through a combination of employee exits and voluntary early retirement, HP expects to incur costs of about $1 billion.

The costs are expected to break down in $100 million in fiscal Q4 2019 and $500 million in fiscal 2020, with the remaining balance to occur in fiscal 2021 and 2022. HP is estimating a savings of about $1 billion by the end of fiscal 2022.

“We are taking bold and decisive actions as we embark on our next chapter,” Enrique Lores, incoming president and CEO at HP, said.

“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. We will become an even more customer-focused and digitally enabled company, that will lead with innovation and execute with purpose,” he said.

Going forward, the company estimated that its cash flow will be at least $3 billion for fiscal 2020.

As of Oct. 31, HP reportedly had about 55,000 employees worldwide. The job cuts will affect about 16 percent of its workforce, according to Reuters.

Shares of HP stock were down 10.00 percent as of 11:26 a.m. ET on Friday.

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The entrance to a Hewlett-Packard Co. office complex is shown in Rancho Bernardo, California, May 12, 2016. REUTERS/Mike Blake/File Photo
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