HP plans to lay off between 4,000 and 6,000 workers over the next three years
The computer giant HP Inc. announced on Tuesday that it would fire between 4,000 and 6,000 employees over the next three years.
The computer giant HP Inc. announced on Tuesday that it would fire between 4,000 and 6,000 employees over the next three years. The business is the newest player in the tech sector to use mass layoffs as a cost-cutting tool in the event of a future recession.
The initiative is part of HP's "Future Ready Transformation" initiative, which aims to achieve substantial structural cost savings through digital transformation, portfolio optimization, and operational efficiencies.
On a gross-run rate basis, these modifications will result in yearly savings of at least $1.4 billion by the end of the fiscal year 2025. Labor and non-labor costs related to restructuring and other charges, according to the firm, would reach around $1.0 billion, with about $0.6 billion in the fiscal year 2023.
According to HP, revenue for the three months that ended in October 2021 decreased by 0.8% from the same period the previous year, reaching $14.80 billion.
The Personal Systems division, which includes PCs, had a 21% fall in unit sales and a 13% decline in revenue to $10.3 billion. Revenue in the consumer sector dropped by 25%. Printing revenue fell 7% to $4.5 billion, while unit sales fell 3%.
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