HP Inc. has announced that they will eliminate around 4,000 to 6,000 workers by 2025. Moreover, the company reported its fourth quarter earning which has dropped by $14.8 million.
HP’s restructuring plans
According to regulatory filing, HR is employing 51,000 people globally as of December 2021. Unsurprisingly, HP has become the latest tech firm which has announced lay-offs. The tech giant announced that these job cuts are part of their future transformation plans. Moreover, the company also stated that these layoffs will help the tech firm in saving at least $1.4 billion annually by the end of 2025. In addition, the company is expecting a decrease in demand of its products during first quarter of 2023. Hence, its earnings will drop and will result in lower profits. Furthermore, HR is planning to incur $1bn in costs related to the restructuring.
“These are the toughest decisions we have to make because it involves our colleagues. The channel is the way we go to market and how we manage the majority of our sales. So clearly, this is something we are going to be protecting to make sure that our channel partners continue to have the right relationships, the right connection, the right engagement with the company. Making sure we are close to our partners is even more important than ever. What’s really important is that this builds a strong foundation.” HP CEO Enrique Lores said.
HP reported losses in 4th quarter
HP is a manufacturer of computer hardware and printers. The company reported 11.2 percent drop in its revenue during the last quarter. The revenue from printing dropped down by 7 percent. Similarly, the revenue from its PC segment also dropped by 13 percent.
Many large tech companies including Meta, Twitter, Microsoft and Amazon has announced mass layoffs in a bid to reduce costs.
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