HP Inc. is the most recent tech firm to announce main layoffs. Here is what number of jobs its planning to chop
Pc and printer maker HP Inc. stated on Tuesday that it plans to put off 4,000 to six,000 workers over the following three years—making it the most recent tech firm to announce job cuts or hiring freezes.
HP Inc.’s layoffs, which symbolize almost 10% of its present workforce, are a part of a broader cost-cutting plan that comes amid declining gross sales and a souring economic system. On Tuesday, the corporate stated fourth quarter income had dropped 11.2% from the identical interval a yr earlier, to $14.8 billion.
The corporate partly blamed weak desktop pc gross sales, an issue impacting corporations throughout the PC trade in current months. Fourth-quarter gross sales in HP Inc.’s division that features computer systems dropped 13% year-over-year to $10.3 billion, pushed largely by a 25% decline in shopper income.
In a press release, HP Inc. CEO Enrique Lores described it as a “risky macro-environment” and cited “softening demand” for his firm’s merchandise over the past six months.
HP Inc.’s layoffs coincide with a wider retrenchment by the tech sector attributable to rising recession fears introduced on by excessive inflation and excessive rates of interest. Final week, Amazon introduced 260 layoffs and hinted that there’d be extra subsequent yr, saying the economic system was in a “difficult spot”. Some experiences say Amazon plans to put off as much as 10,000 workers.
Earlier this month, Fb mum or dad Meta stated it will minimize 11,000 workers. In the meantime, Twitter, after being acquired in October by Tesla CEO Elon Musk, laid off greater than half of its workforce. And final month, Microsoft introduced layoffs throughout a number of divisions.
HP’s newest layoffs come greater than three years after earlier job cuts in 2019 of seven,000 to 9,000 workers.
With out straight addressing the most recent layoffs, Lores instructed the Wall Road Journal that he’s making ready for a downturn that might final not less than into 2024, saying “it’s prudent to not assume that the market will flip throughout 2023.”
The layoffs, plus a discount within the firm’s actual property footprint, are anticipated to save lots of the corporate $1.4 billion in annualized spending by the tip of 2025’s fiscal yr. It expects the restructuring to value round $1 billion.
A spokesperson for HP Inc. instructed Fortune that the layoffs are “the hardest choices, as a result of they impression colleagues we care deeply about. We’re dedicated to treating folks with care and respect—together with monetary and profession providers help to assist them discover their subsequent alternative.”
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