HP laying off 4,000-6,000 Employees globally over the next Three Years

In a move that has sent shockwaves throughout the tech industry, Hewlett-Packard (HP) announced they are cutting 4,000 to 6,000 jobs over the next three years. The layoffs come as part of HP’s restructuring plan to reduce costs and become more competitive in a rapidly changing technology market.

HP plans on cutting jobs by the end of its 2025 fiscal year and has become the latest tech company to take this strict move to reduce operating costs. This was announced during a post-earnings call and was later reported by Reuters. The company has announced that it will likely lay off close to 6,000 employees, 12 percent of its global workforce.

Marie Myers, chief financial officer, announced job layoffs. This is in response to the recent sales decline of PCs. Many other large companies in the tech industry, such as Meta and Amazon, have also had to let go of thousands of employees due to poor market conditions.

At the post-earnings meeting, Myers said that a few issues from 2022 would persist into the 2023 fiscal year.

The report states that HP could endure $1.0 billion in labor and non-labor costs associated with restructuring and other expenses, with close to $600 million in fiscal 2023 followed by the rest spread out between the following two years.

4,000 to 6,000 layoffs are expected as a result of the current company restructuring. Right now, 50,000 people work for the organization but it’s not transparent which departments would experience these job losses. HP also released its own statement that 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”.

In Q3 2022, global PC shipments saw a 15.5 percent YoY decrease according to research firm Counterpoint last month’s reports. In terms of units shipped, this equals 12.7 million in Q3 2022 versus HP’s 17.3 million in the same quarter the year prior – HP being second globally in market share.

William Li, the author of the research, further wrote-

“Looking into 2023, the sky is still covered by dark clouds. We are also adjusting our 2022 shipment forecast to a 13% YoY decline on soft PC demand”.

Other than HP, Amazon, and Meta layoffs recently due to macroeconomic reasons, Twitter also canned half its employees last month. Unfortunately for some workers there, more firing may be on the horizon in the coming days and weeks. Although, re-filling of other important positions is also in Twitter’s current plan.

HP is hoping that the restructuring will make them more competitive in the long run, though it’s difficult to tell how successful their job cuts and other corporate changes will be until later this year. We’ll have to wait and see whether HP’s layoffs can help turn around their current financial situation.

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