HP to fire 4,000-6,000 employees in 3 years
Layoffs in the tech world are in full swing. Another major tech company has joined the list of giants who have announced job cuts this year. HP, once the world's largest PC maker, said that it expects to cut 4,000-6,000 jobs by the end of fiscal 2025. The Palo Alto-based company's total headcount is around 50,000.
Why does this story matter?
News about tech layoffs has become an everyday thing now. Snap, Meta, Amazon, Microsoft, Google, Twitter...the list goes on. HP's announcement to cut jobs is evidence that things aren't going well on the hardware side of things too. Falling revenue has become a common theme among PC makers. Business is not looking that bright for the foreseeable future for tech companies.
The company plans to cut around 12% of the workforce
HP announced its decision to cut at least 4,000 jobs in its fourth-quarter earnings report. The company plans to fire around 12% of its global workforce. The PC maker's decision is in response to growing economic uncertainty and falling demand for computers, both personal and commercial. In the quarterly report, HP also reported an 11% fall in revenue to $14.8 billion.
Global PC shipments are falling at a record pace
Last month, industry watchers IDC and Gartner warned about dropping demand for PC. In the third quarter of 2022, they said, global shipments saw a 19.5% year-over-year decline. The report showed that the demand for computers was dropping at its fastest pace in decades. PC sales have come down from their pandemic heights, as households and businesses put a break on their spending.
HP doesn't believe that the market will turn in 2023
HP believes that the prevailing market situation will continue. "We think that at this point it's prudent not to assume that the market will turn during 2023," said Enrique Torres, the company's Chief Executive Officer. The company estimates that it will incur $1 billion in labor and non-labor costs related to restructuring and other charges in the next three years.
