Market conditions prompted HP to significantly cut its global workforce. The organization announced a round of layoffs affecting up to 10 percent of its personnel.
The PC market is in a slump. Various manufacturers posted disappointing quarterly results. HP is feeling the pressure. The organization announced that economic circumstances will affect personnel. HP expects the market will continue to trend down next year.
The tech giant plans to lay off 10 percent of its global workforce. Between four and six thousand employees will be forced to leave in the coming period.
The layoffs are part of a restructuring plan designed to cut costs by at least €1.35 billion ($1.4 billion) between now and fiscal 2025. Aside from laying off personnel, HP plans to speed up digital transition, optimize its portfolio and improve operational efficiency.
Sales are down
In addition to the layoffs, the tech giant announced the results of the fourth fiscal quarter of 2022 and the full fiscal year.
Quarterly sales totalled $14.8 billion, down 11 percent from the same period last year. The PC and laptop division generated revenue of $10.3 billion, down 13 percent.
HP posted yearly revenue of $63 billion, a 1 percent drop from $63.5 billion in 2021.