HP plans to layoff 10% of global force, cut around 6000 jobs in next few years

By Team Newsable | First Published Nov 23, 2022, 1:56 PM IST

HP Inc. said it would eliminate between 4,000 to 6,000 people from its workforce by 2025 after a tough fourth-quarter earnings report showed a year-over-year revenue drop of 11.2 percent to $14.8 billion.

The Hewlett-Packard Company (HP) will eliminate up to 6,000 positions over the next three years in response to declining personal computer demand that has decreased revenues. The majority of HP's revenue comes from the sale of personal computers, which has been declining steadily. It began with low-end consumer items and has subsequently spread as firms reduce their workforce and cut back on technological investment.

In order to decrease expenses, HP will downsize its worldwide workforce of 61,000 people by up to 10% over the next three years, according to CEO Enrique Lores. The corporation anticipates restructuring expenses of $1 billion, with around 60% of those expenses occurring in the just begun fiscal year 2023. By the conclusion of the fiscal year 2025, HP estimates that the strategy will have saved as much as $1.4 billion annually.

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The announcement by chief financial officer Marie Myers comes at a time when sales of PCs are sliding. Numerous internet behemoths, like Meta and Amazon, fired thousands of employees as a result of the weak macroeconomic conditions.

Myers stated on the call following the earnings that a number of the current issues from FY 2022 will persist in FY 2023. According to the research, HP may incur expenditures for restructuring and other charges totaling $1.0 billion in labour and non-labour costs, "with almost $600 million in fiscal 2023 and the balance divided between the following two years."

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Several IT companies have announced plans to decrease their workforces in recent weeks. About 10,000 employees were let go by Meta Platforms Inc. and Amazon.com Inc., and Twitter Inc. cut more than half of its 7,500-person workforce. While hard drive manufacturer Seagate Technology Holdings Plc. said it would cut around 3,000 positions, Cisco Systems Inc. revealed last week a plan to shut operations and eliminate an undefined number of workers.

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