HP announces layoffs of 10%, about 6,000 people
HP’s main business revolves around electronic products such as desktops, notebooks, printers, and servers. As the market demand for personal computers continues to slump, HP’s revenue is also affected. “We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half. In Q4 we delivered on our non-GAAP EPS target, while also completing our three-year value creation plan and exceeding our key metrics,” said Enrique Lores, HP President and CEO. “Looking forward, the new Future Ready strategy we introduced this quarter 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.”
At present, HP has about 61,000 employees. In order to manage the company’s operating costs and deal with the market downturn, Enrique Loures said that he will lay off about 10% of the employees in the next three years, and continue to optimize the management of the company’s real estate, with the goal of saving HP $1.4 billion a year. He also said that he doesn’t think it should be assumed that the market will improve in 2023. Previously, Meta, the parent company of the social media platform FB, announced that it would lay off 10,000 employees, Seagate would lay off 3,000 employees, Twitter would lay off 7,500 employees, and Amazon would lay off 10,000 employees.