IT Giant HP Will Fire 6000 Employees In Next 1000 Days: Poor Performers Will Be Asked To Leave
American tech giant Hewlett Packard Enterprise has announced plans to layoff thousands of workers over the next three years.
Due to declining PC demand which has led to reduced revenues the firm will axe up to 6,000 jobs over the next three years.
HP has been hit by poor market performance of personal computers, which accounts for the majority of its revenue.
The third quarter saw a decline in global PC shipments of almost 20%, which is the largest decrease since Gartner Inc. began tracking the data in the middle of the 1990s.
As businesses cut down on employee numbers and cut back on technology spending, it started with lower-end consumer goods and has since spread.
It has become the latest tech company to significantly downsize staffing amid an uncertain economic climate.
HP announced its plans along with its lacklustre quarterly earnings report which revealed its sales dropped more than 11% compared to the same period last year.
4-6K to be out of a job
“The company expects to reduce gross global headcount by approximately 4,000-6,000 employees,” it said.
“These actions are expected to be completed by the end of fiscal 2025.”
Before the cuts HP reported a global headcount of some 51,000 employees.
It will also reduce its real estate footprint and slash up to 10% of its 61,000 global employees over the next three years to control costs, as per President and CEO Enrique Lores.
Lores added in a statement that the company’s so-called “Future Ready strategy” 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.”
Restructuring costs for the company are expected to total $1 billion, with roughly 60% of those costs falling in the newly started fiscal year 2023.
Latest IT major to join in layoffs
According to HP’s statement, the plan should save as much as $1.4 billion annually by the end of the fiscal year 2025.
As earlier mentioned, this makes HP the latest in a slew of major tech companies to layoff thousands in significant job cut exercises.
Facebook parent Meta, Google parent Alphabet, Musk-owned Twitter, Amazon are some of the biggest names so far.
How Silicon Valley is faring
Meta Platforms Inc. and Amazon.com Inc in particular have begun laying off about 10,000 workers, and Twitter Inc. eliminated more than half of its 7,500-person workforce.
Cisco last week unveiled a plan to reduce an unspecified number of jobs and close offices.
Hard drive manufacturer Seagate Technology announced it would eliminate about 3,000 jobs.