Tech giant HP says it will cut up to 6,000 jobs by 2025 as PC demand slumps
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- Tech giant HP plans to cut 4,000 to 6,000 jobs by fiscal 2025.
- It's the latest tech company announcing big job cuts, after a hiring spree during the pandemic.
- HP posted an 11% drop its fourth-quarter revenues, as demand slumped from a pandemic peak.
Hewlett-Packard, or HP, has become the latest company in the doom struck tech sector to conduct layoffs, after it said it would cut up to 6,000 jobs over the next three years.
In a statement on Tuesday, HP said the company expects to cut global headcount by 4,000 to 6,000 employees by the end of its 2025 fiscal year under its "Future Ready Transformation" plan.
Restructuring costs will amount to $1 billion over the three years, but HP expects to save $1.4 billion a year by the end of fiscal 2025.
The layoff announcement follows a sombre financial fourth-quarter performance. HP's revenues declined 11% year-on-year to $14.8 billion, as consumer demand for computers and tech equipment fell from a COVID-19 pandemic peak.
Though the revenues beat analysts' expectation, HP — which now employs 61,000 people globally — expects a "challenging market environment" in the current fiscal year which runs through October 2023, Enrique Lores, the CEO of HP, told Bloomberg in an interview.
The gloomy assessment echoes that of its competitor Dell, which foresees a damp outlook for demand, as some customers have "paused purchases," CFO Tom Sweet said in a Monday earnings call with analysts.
HP joins a slew of companies in the tech sector that are laying off employees after a hiring spree during the pandemic. Big Tech firms Meta, Amazon, and Microsoft have all laid off staff in the last two months amid macroeconomic concerns.
HP shares rose 2.1% to $30 in after-hours trade, extending gains of 0.75% on Tuesday.
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