The layoffs are part of a restructuring plan called the Future Ready Transformation plan. The company hopes to save more than one billion dollars by the end of the fiscal year. In the next three years, 4,000 to 6,000 jobs will be cut.
According to HP's earning report, 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 equally between fiscal 2024 and 2025, Approximately 4,000-6,000 employees are expected to be reduced by the company. The actions are expected to be finished by the end of the fiscal year.
The fiscal year net revenue for HP fell 0.8% to $63 billion, and the Q4 revenue fell 11.2% to $14.8 billion. The president and CEO blamed the performance on a volatile macro-economy and softer demand in the second half of the year.
HP isn't the only one to cut back staff. A number of social media companies have made cuts to their workforces. Amazon and Microsoft are both making tough decisions in an uncertain economy and over-hiring during the Pandemic.
All Rights Reserved © 2024
