HP plans to cut between 4,000 and 6,000 jobs by the end of 2025, making it the latest global tech firm to announce workforce reductions.
The tech giant says the job cuts are part of its “future-ready transformation plan” that will help it save at least $1.4bn annually by the end of its 2025 fiscal year
HP announced the job cuts in its recent earnings report (November 22) and will join the slew of tech companies laying off employees after a hiring spree during the pandemic.
The company foresaw a global downturn in demand for its products in the first quarter of 2023 in its earnings report, resulting in a lower-than-expected profit. However, HP expects to incur around $1bn in costs related to the restructuring.
Printing revenue was down 7pc to $4.5bn as units fell 3pc as overall revenue in the fourth quarter declined by 11.2pc year-on-year to $14.8bn.
Revenue in the personal systems segment – which includes PCs also fell by 13pc along with a 21pc drop in units.
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The PC market’s global decline has also prompted Intel to consider reducing personnel, in an effort to reduce expenditures.
HP president and CEO, Enrique Lores said ther company had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half,
“The new ‘future-ready’ strategy we introduced this quarter will enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future.” said Lores
Meta, Twitter, Stripe, Microsoft, and Amazon have all recently announced large-scale layoffs, which are intended to reduce costs.
Around 50,000 people work for HP worldwide, meaning 12% of its total workforce will be eventually terminated.
Hewlett-Packard (NYSE: HPQ) shares rose 2.1% to $30 in after-hours trade, extending gains of 0.75% on Tuesday.
Australia is expected to have a shortage of 186,000 tech workers by 2030 and must create 1 million tech jobs by 2025 in order to capture the economic benefits of the sector.