(Reuters) - U.S. personal computer maker HP Inc said on Thursday it will cut up to 16% of its workforce as part of a restructuring plan aimed at cutting costs.

The logo for The Hewlett-Packard Company is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 27, 2018. REUTERS/Brendan McDermid

The company will cut about 7,000 to 9,000 jobs through a combination of employee exits and voluntary early retirement, it said in a statement.

HP estimates the plan will result in annual gross run rate savings of about $1 billion by the end of fiscal 2022, it added.

The company had about 55,000 employees worldwide as of Oct. 31, according to a filing with the U.S. Securities and Exchange Commission. That would mean up to 16% targeted in the cuts, Reuters calculation showed.

In connection with the restructuring, HP said it expects to incur an overall charge of about $1 billion, of which $100 million will be realized when it reports its fourth-quarter earnings.

“We are taking bold and decisive actions as we embark on our next chapter,” said Enrique Lores, the company’s incoming chief executive officer.

“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 will take over the CEO position on Nov. 1 from Dion Weisler.

Palo Alto, California-based HP also said its board on Sept. 30 approved an additional $5 billion in share buybacks.

HP expects to generate free cash flow of at least $3 billion in fiscal 2020 and return at least 75% to shareholders through a 10% quarterly dividend increase and share buybacks, it added.

The company said it expects its adjusted earnings in the range of $2.22 to $2.32 per share for fiscal 2020.

For the current fiscal year, it expects adjusted earnings to be in range of $2.18 to $2.22, the company said when reporting its third-quarter earnings.

HP’s shares have fallen about 10% this year up to Thursday’s close.