On Tuesday (22nd November, 2022), HP Inc said it would eliminate between 4,000 to 6,000 people from its workforce by 2025 after a tough fourth-quarter earnings report according to CEO Enrique Lores . The report clearly shows an year-over-year revenue drop of 11.2 per cent to $14.8 billion.
According to the regulatory filing, HP had approximately 51,000 global employees as of December 2021. And the news of slashing and layoffs shouldn't come as a surprise as a number of IT businesses have revealed intentions to reduce their workforces; Beginning with Twitter, Meta, Cisco, etc.
“These are the toughest decisions we have to make because it involves our colleagues,” HP CEO Enrique Lores said on an earnings conference call Tuesday with analysts after the news was disclosed in a media briefing.
Owning the majority of revenue from the personal computer segment, HP has been coping with a persistent decline in the market, affecting its overall revenue drastically.
Further, restructuring costs for the company are expected to total $1 billion. According to HP's statement, the plan should save as much as $1.4 billion annually by the end of the fiscal year 2025.
The third quarter saw a major decline in global PC shipments of almost 20 per cent, which is the largest decrease since middle of the 1990s.