HP: By eliminating positions by the end of its fiscal year in 2025, HP will join a growing list of tech companies making rigorous decisions to reduce operating costs. According to Reuters, the corporation would probably fire close to 6,000 workers, or about 12% of its global staff, as it announced during its post-earnings call. Marie Myers, the chief financial officer’s declaration comes at a time when PC sales are declining. Numerous tech giants, including Meta and Amazon, fired thousands of employees as a result of the weak macroeconomic conditions.
Myers stated on the call following the earnings that a number of the current issues from 2022 will persist in FY 2023.
According to the research, HP might spend $1.0 billion on labour and non-labour costs and other expenses associated with restructuring and other costs, or “with nearly $600 million in fiscal 2023 and the rest split between the following two years.”
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There would be 4,000 to 6,000 job losses as a result of the restructure
The company currently employs about 50,000 people. Which departments would be affected by the layoffs are still unknown. HP also released a statement, which read: “As part of the actions we are taking, we will be reducing the size of our workforce by 4,000-6,000 people over the next three years. These are the toughest decisions we have to make, because they impact colleagues we care deeply about. We are committed to treating people with care and respect – including financial and career services support to help them find their next opportunity.”
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What do research reveals?
Research company Counterpoint noted last month that worldwide PC shipments decreased 15.5% year over year in Q3 2022. With a second highest global market share, HP sold 12.7 million units in Q3 2022 compared to 17.3 million in Q3 2021. “Looking into 2023, the sky is still covered by dark clouds. We are also adjusting our 2022 shipment forecast to a 13% YoY decline on soft PC demand,” is what William Li, the study’s author, wrote.
In addition to HP, Amazon and Meta also recently let go of thousands of workers due to macroeconomic conditions. The company may terminate a few more employees in the upcoming days and weeks. Twitter also fired half of its employees last month. But it also intends to fill certain important roles again.
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