HP follows a growing list of big tech firms who intend to shrink their workforce amid growing economic pains.
Amid a shrinking demand for personal computers, HP Inc. announced that it would eliminate as many as 6000 jobs, globally, over the next three years.
The company said that the deteriorating demand for personal computers has cut into profits. While reporting its earnings for the fiscal fourth quarter that ended on October 31, HP said revenue declined 0.8% year over year to $14.8 billion. The revenue in the personal systems segment, which includes PCs, fell 13% to $10.3 billion, as units dropped 21%. Consumer revenue in the segment slid 25%. Printing revenue, at $4.5 billion, was down 7%, as units fell 3%.
HP’s chief executive officer Enrique Lores told Bloomberg that the forecast assumed a 10% decline in computer sales in the fiscal year. “We expect a challenging market environment,” he said.
HP employs nearly 61000 people across the globe. To manage costs, HP would cut as much as 10 per cent of its global workforce over the next three years and reduce its real estate footprint, Lores added.
In a statement, the company said that it would incur about $1 billion in restructuring charges, with about 60% in the 2023 fiscal year, which began in December. By the end of fiscal 2025, the plan should allow the company to save $1.4 billion a year.
HP is the latest technology company to announce its intent to cut down the workforce amid growing economic pains. Facebook parent Meta, Microsoft and Salesforce have made similar changes.