HP to cut up to 6,000 staff in plan to mitigate PC market softness

In the face of declining revenue, HP has announced it expects to lay off 4,000 to 6,000 employees by the end of fiscal year 2025, reducing its 51,000-strong global workforce by about 12%.

The news comes as economic turbulence causes other major technology companies to announce layoffs.

The news of the HP job cuts was made public when the company on Tuesday posted its fourth quarter 2022 financial results, which saw a year-on-year decline in revenue of 11.2% to $14.8 billion. The company’s personal systems, consumer, and commercial segments fell by 13%, 25% and 6% respectively. Notebook and desktops units also saw a decline, with units decreasing by 21% overall.

The job cuts form part of HP’s so-called “Future Ready” strategy, announced in conjunction with its quarterly results. In a conference call with analysts after the result were posted, HP President and CEO Enrique Lores said the strategy would enable the company to better serve its customers and drive “long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future,” according to a transcript from Seeking Alpha.

Lores added that the cost actions laid out the Future Ready plan will generate at least $1.4 billion in savings by year-end fiscal year 2025, allowing the company to navigate what he described as “near-term market headwinds” and mitigate softness in HP’s core markets.

In a statement, HP said: “As part of the actions we are taking, we will be reducing the size of our workforce by 4,000-6,000 people over the next three years. These are the toughest decisions we have to make, because they impact colleagues we care deeply about. We are committed to treating people with care and respect – including financial and career services support to help them find their next opportunity.”

Copyright © 2022 IDG Communications, Inc.

Source : https://www.computerworld.com/article/3681068/hp-to-cut-up-to-6000-staff-in-plan-to-mitigate-pc-market-softness.html#tk.rss_all

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