HP Inc., one of the most popular computer manufacturing companies, announced that the company is planning to cut jobs by the end of 2025. With this effect, HP will become the latest tech giant to take a strict move to minimize its operating costs.
HP declared openly during its post-earnings call and was briefed by Reuters that the organization will probably lay off nearly 6,000 workers. HP will translate to around 12% of its workforce over the globe.
The company’s chief financial officer, Marie Myers says at a time when sales of PCs were declining. Over the globe, several tech giants such as Meta and Amazon also took action towards laying off thousands of workers owing to poor macroeconomic situations.
At the time of this work-from-home culture, the company has observed a steady growth in sales as people were forced to work from home through their laptops during the lockdown period. However, the sensational change in the company lasted only a short time after the reopening of offices and everyday work life.
The total number of employees in the company is 50,000 workers. The trimming of employees of about 4000 to 6000 will restructure the overall working pattern of the company.
However, it is still being determined which departments would be impacted by the action layoff. HP also issued a statement in which it mentioned that as a part of the actions the company is taking, it would be reducing the size of its workforce by 4,000-6,000 people over the next three years. These are the most challenging decisions made by the tech giant. HP is committed to treating people with care and respect, including financial and career services that help them find their next best opportunity.
HP is launching its Future Ready Transformation plan with annualized gross run rate savings of $1.4 billion or more in the next three years, with around $1 billion in costs, including restructuring. Among that, $1 billion and $600 million will come in the fiscal 2023 fiscal year. The remaining amount will be split evenly between the 2024 and 2025 fiscal years.
In the year 2021, HP had around 51,000 workers. In 2019 HP declared that it would wipe out 7,000 and 9,000 employees.
The earnings of HP in the fourth quarter of 2022 declined by 0.8% to $14.80 billion, which ended on 31 October. Revenue in the Personal Systems segment comprises PCs, fell 13% to $10.3 billion, as units fell over 21%. Consumer revenue in the segment fell 25%. Printing earnings, at $4.5 billion, were down 7%, as branches fell 3%.
