HP Inc. said: The computer and printer maker said Tuesday that it plans to lay off 4,000 to 6,000 employees over the next three years — making it the latest technology company to announce job cuts or a hiring freeze.
HP Inc. layoff , which represents roughly 10% of its current workforce, is part of a broader cost-cutting plan that comes amid declining sales and a flagging economy. The company said on Tuesday that fourth-quarter revenue fell 11.2% from the same period last year, to $14.8 billion.
The company partially blamed poor desktop computer sales, an issue that has affected companies across the PC industry in recent months. Fourth-quarter sales declined in the HP Inc. division. That includes PCs up 13% year-over-year to $10.3 billion, largely driven by a 25% decline in consumer revenue.
In a statement, the CEO of HP Inc. , Enrique Lloris, described it as a “volatile macro environment” and noted “declining demand” for his company’s products over the past six months.
HP Inc.’s layoffs coincide. With a broader contraction of the technology sector due to growing recession fears caused by high inflation and high interest rates. Last week, Amazon announced 260 layoffs and hinted there would be more next year, saying the economy is in a “tough place.” Some reports say that Amazon is planning to lay off up to 10,000 employees.
Earlier this month, Facebook’s parent company, Meta, said it would cut 11,000 employees. Meanwhile, Twitter, after being acquired by Tesla CEO Elon Musk in October, has laid off more than half of its workforce. And last month, Microsoft announced layoffs in multiple departments.
HP’s latest layoffs come more than three years after the previous 7,000 to 9,000 employees were cut in 2019.
Loris told Wall Street Journal He is preparing for an economic downturn that could last until at least 2024, saying “it is wise not to assume that the market will turn around during 2023.”
The layoffs, in addition to reducing the company’s real estate footprint, are expected to save $1.4 billion in annual spending for the company by the end of fiscal 2025. It expects the cost of the restructuring to be around $1 billion.
A spokesperson for HP Inc. said: luck That layoffs are “the hardest decisions, because they affect the colleagues we care about most deeply. We are committed to treating people with care and respect – including financial and job services support to help them find their next opportunity.”
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