The season for layoffs has arrived; is this the start of a recession? HP plans to lay off employees over the next few years. The announcement by Chief Financial Officer Marie Myers comes at a time when their sales are decreasing. Earlier, we witnessed layoffs at Meta, Twitter, and Amazon.
Keep it to the point
- HP might incur about $1.0 billion in labour and non-labor costs.
- The company currently employs over 50,000 workers.
- Counterpoint shared the report, which highlighted that global PC shipments fell by 15.5 percent YoY in Q3 2022.
Crox Media’s: HP is planning to cut jobs by the end of 2025, making it the first tech giant to make a strict move to minimise its operating costs. This was announced during post-earnings and reported by Reuters: the company is likely to lay off nearly 6,000 employees, which is almost 12 percent of the total workforce. The announcement was made by Chief Financial Officer Marie Myers and came at a time when their global sales and shipments are declining. Many tech giants, such as Meta and Amazon, also laid off thousands of workers owing to these macroeconomic situations.
During the recent post-earnings call, Myers said there were several recent challenges in 2022 that would continue in FY 2023. The report also highlights that HP might incur $10 billion in labour and non-labor costs related to restructuring and other charges.
HP is planning layoffs for 4,000 to 6,000 employees, but which departments will be affected has yet to be revealed. The CFO said, “This is the toughest decision that we are going to make in the next few years.” “We are committed to treating people with care and respect, including financial and career services support to help them find their next ideal opportunity.”
Apart from HP, Amazon and Meta recently laid off thousands of employees owing to macroeconomic situations. Twitter also laid off half of its workers last month, and the company may fire a few more in the coming days and weeks. But they are planning to fill the key positions too.