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The PC and printing giant will be letting go up to 12pc of its workforce as an ongoing global slump in PC sales affects its business.
HP is the latest global tech company to reveal downsizing plans, saying it will cut between 4,000 and 6,000 jobs by the end of 2025.
The PC and printer maker said the job cuts are part of its “future-ready transformation plan” that will help it save at least $1.4bn annually by the end of its 2025 fiscal year.
However, HP expects to incur around $1bn in costs related to the restructuring – with more than half of that in 2023.
The job cuts were announced in its latest earnings report yesterday (22 November), where HP forecast a lower-than-expected profit for the first quarter of 2023 as it expects a global lull in demand for its products.
This global slump in PC sales has also led companies such as Intel to consider cutting jobs in a broader attempt to reduce costs.
While HP’s overall revenue in the fourth quarter declined by 11.2pc year-on-year to $14.8bn, revenue in the personal systems segment – which includes PCs – fell by 13pc along with a 21pc drop in units. Printing revenue was down 7pc to $4.5bn as units fell 3pc.
“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half,” said HP president and CEO Enrique Lores.
“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.”
The job cuts come amid a wave of tech layoffs designed to reduce costs, with mass cuts at Meta, Twitter, Stripe, Microsoft and Amazon.
HP has around 50,000 employees worldwide, which means the company will be letting go up to 12pc of its global workforce. It is not clear yet if staff in Ireland will be impacted.
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