HP Joins the Bandwagon; to Layoff 6k Employees Globally
PC and Printer giant, Hewlett Packard announces to cut its workforce by 2025 by 6000 on the backdrop of its lacklustre quarterly earnings report, where it also said that its sales dropped more than 11% compared to the same period last year.
In the earnings report for its fourth quarter of 2022, the company said it expects to reduce gross global headcount by approximately 4,000-6,000 employees, which is between 7-11 percent of its workforce. “These actions are expected to be completed by the end of fiscal 2025,” HP said in a statement late on Tuesday.
The layoffs came as the company announced a ‘Future Ready Transformation Plan’, estimating annualised gross run-rate cost savings of at least $1.4 billion by the end of fiscal 2025, and restructuring and other charges of approximately $1 billion.
HP is the first computer maker and the latest to join the bandwagon of tech companies going for layoffs to cut costs ahead of an impending recession. The latest downsizing comes as the firm saw deterioration in its sales despite, people rushing to install PCs at home as the pandemic struck.
HP said revenue in the October 2021 ended quarter declined 0.8 percent year-over-year to $14.80 billion. Revenue in the Personal Systems segment, which includes PCs, fell 13 percent to $10.3 billion, as units dropped 21 percent. Consumer revenue in the segment slid 25 percent. Printing revenue, at $4.5 billion, was down 7 percent, as units fell 3 percent.
As of 2021, HP had 51,000 employees, down from 53,000 in 2020. In 2019, the tech giant said it would cut between 7,000 and 9,000 jobs.