HP to Lay Off 6,000 Employees in Next Three Years in Cost Cutting Plan
On Tuesday, computer manufacturer Hewlett Packard (HP) revealed its intention to reduce its workforce by up to 6,000 employees over the next three years, citing the ongoing economic challenges affecting the global economy and, in turn, the US tech sector. With a current workforce of approximately 61,000 individuals, HP aims to achieve $1.4 billion (approximately Rs. 11,447 crore) in annual savings through 2025, aligning its strategy with other major tech companies such as Meta (owner of Facebook), Amazon, and Twitter, all of which have recently pursued cost-cutting measures.
HP’s cost-cutting plan is designed to enhance customer service, drive long-term value creation, and position the business for the future, according to a statement from HP CEO Enrique Lores. The decision comes amid a broader trend in the tech industry, where companies are streamlining operations to adapt to economic uncertainties.
Earlier in the month, Meta announced a workforce reduction of over 11,000 employees, while Twitter experienced a significant reduction of half its 7,500-strong workforce shortly after being acquired by billionaire Elon Musk in late October. Lores acknowledged the difficulty of such decisions, expressing a commitment to treating affected individuals with care and respect, as conveyed in an email by an HP spokesperson to AFP.
Alongside the announcement of the workforce reduction plan, HP disclosed an 11.2 percent decline in revenues, totaling $14.8 billion (approximately Rs. 1,21,050 crore) for the final fiscal quarter of 2022.