The world’s largest manufacturer of laptops and electronic devices, Hewlett-Packard (HP), announced huge layoffs on Tuesday. The corporation predicted during its results call that it will eliminate 6,000 employees by the end of the current fiscal year, or 12% of its global staff.
“HP expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2025,” the company said in its fiscal 2022 full-year report.
In order to save $1.4 billion, the corporation would gradually lay off some of its almost 50,000 present employees over the ensuing years. The decision was made after HP reported reduced PC and laptop sales,
During the pandemic, both groups’ sales increased significantly, but since offices and schools have opened, they have leveled off. According to experts, the choice may have been made worse by the depressing economic circumstances brought on by the recession and extremely high inflation.
HP forecasts lower growth
Due to the confluence of the aforementioned factors, the PC manufacturer forecast a lower-than-expected profit for the first quarter in its report. The chief financial officer, Marie Myers, stated that “many of the recent issues we have witnessed in FY’22 will likely continue into FY’23.”
In addition, HP reported an 11% decrease in Q4 sales, which came in at $14.8 billion, as compared to the same quarter in 2017. HP’s announcement of layoffs comes as other large tech firms, including Amazon, Meta, and Twitter, have reduced their workforces, primarily as a result of a global recession.
In the first week after Elon Musk took control of the microblogging site, Meta sacked over 11,000 workers while Twitter let go of half of its workforce. Amazon, which is owned by Jeff Bezos, has announced that it will be firing 10,000 employees.
According to several reports on Tuesday, 10,000 or 6% of the “poor performing” employees of Alphabet Inc., the parent company of Google, would be let go.