A tidal wave of layoffs continues to plague tech companies worldwide, and HP Inc. is the next titan to fall on its sword. In reporting its Q4 and fiscal year results yesterday, the company also announced that it was reducing its workforce by up to 6,000 people by the end of their 2025 fiscal year.
The layoffs come as part of a broader restructuring plan called the Future Ready Transformation plan that HP announced in its earnings report published this week. With the restructuring plan, the company hopes to save $1.4 billion by the end of their 2025 fiscal year. Part of the plan is to cut 4,000 to 6,000 positions in the next three years.
“The company estimates that it will incur approximately $1.0 billion in labor and non-labor costs related to restructuring and other charges, with approximately $0.6 billion in fiscal 2023, and the rest split approximately equally between fiscal 2024 and 2025,” HP announced in their earning report. “The company expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2025.”
HP reported that its fiscal year net revenue for 2022 fell 0.8% to $63 billion compared to last year, and that its Q4 revenue fell a precipitous 11.2% to $14.8 billion year-over-year. HP president and CEO Enrique Lores mainly blamed this performance on “a volatile macro-economy” and “softening demand” in the second half of the year, while the report further specifies that the company’s Personal Systems and Printing saw decreased performance in their respective markets.
HP of course, isn’t alone in cutting back staff. Social media juggernauts like Snap, TikTok, Twitter and Meta have all made cuts to their workforces this year. Amazon and Microsoft are also among the big names making tough decisions in an uncertain economy followed by, in some cases, over-hiring during the pandemic.