HP plans to lay off as many as 6,000 employees over the next three years. The PC builder is forced to restructure.
The decision came after the close of Q3 2022 and a Q4 forecast meeting, Gizmodo reports. The ‘Future Ready Transformation Plan’ should help HP save $1.4 billion by the end of fiscal year 2025. To achieve that, at least 4,000 layoffs must be made. That may go towards 6,000. The downsizing would then be carried out before the end of 2025.
HP employs approximately 51,000 people worldwide. In the third quarter, sales fell more than 11 percent to $14.8 billion. According to CEO Enrique Lores, this is due to “macroeconomic conditions and slightly declining demand for HP PCs and printers.
HP: “Necessary for the future”
According to Lores, the restructuring will allow his company to “better serve our customers in the long term and create added value. It allows us to reduce costs and reinvest in key initiatives to prepare HP for the future,” he said.
It is striking that shortly after the mass layoffs at Twitter, another tech giant decided to restructure. Meanwhile, Twitter has already fired 11,000 employees after Elon Musk officially became the new CEO on October 27. It is the largest mass layoff in the history of the social media company.