Computer manufacturer HP plans to lay off up to 6,000 employees
PC manufacturer HP wants to lay off up to 6,000 employees in the next three years. The reason for the job cuts is an impending slump in sales of computers. The company’s current quarterly figures are also below expectations.
HP plans to cut 4,000 to 6,000 jobs over the next three years. Up to ten percent of the entire workforce would be affected. The company announced this as part of a report for the current fiscal year 2022.
HP expects a slump in sales
Accordingly, the company wants to save costs of up to 1.4 billion US dollars. The reason for the job cuts is an impending slump in sales of PCs. Chief Executive Enrique Lores said in one interview:
The forecast assumes a 10 percent decline in computer sales in the fiscal year. We expect a difficult market environment.
In 2014, Hewlett-Packard announced it would split into two separate public companies. While Hewlett-Packard Enterprise has been responsible for the IT infrastructure, software and the corresponding services since then, HP primarily offers hardware devices such as computers, printers and the like.
Hewlett-Packard: Sales and profits down
In the course of the split, around 250,000 employees switched to Hewlett Packard Enterprise. 50,000 employees remained at HP. In October 2021, the number of employees was at a similar level. Two years earlier, however, HP had already laid off between 7,000 and 9,000 employees.
Up to 6,000 more employees are to leave the company in the next three years. In addition to an impending slump in sales, the reason is also a drop in profits and sales. According to its own statements, the PC manufacturer recorded a 21 percent decline in notebook sales in the current financial year.
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