14 DAY TRIAL // HP is the latest tech giant that decides to turn to layoffs due to dropping sales, as the company has recently announced that it plans to lay off up to 6,000 employees over the next three years.
A report from CNBC cites HP as saying that the cut will include at least 4,000 jobs.
This isn’t the first massive job cut taking place at HP in the last decade though. Back in 2019, the company announced plans to lay off between 7,000 and 9,000 employees. The latest numbers shared in October last year indicated HP had approximately 51,000 employees worldwide.
While no further details have been shared on the layoffs, it’s pretty clear the decision comes after declining sales in the PC market, with HP obviously hit by the current economic climate that’s causing problems for everybody in the tech industry.
Declining sales in the PC market
In the latest earnings report, HP said that it indeed recorded softening demand, though it praised what it described as a solid end to the fiscal year.
“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half. In Q4 we delivered on our non-GAAP EPS target, while also completing our three-year value creation plan and exceeding our key metrics," said Enrique Lores, HP President and CEO. “Looking forward, the new Future Ready strategy we introduced this quarter will enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future.”
The full details about the layoffs will most likely be shared by HP in internal memos in the coming days and weeks, so expect additional information to make its way online rather sooner than later.