Three years after HP laid off close to 9,000 employees, the US-based tech company has revealed that another round of layoffs is bound to happen. In its quarterly earnings statement, the company said it expects to reduce gross global headcount by approximately 4,000-6,000 employees. “These actions are expected to be completed by the end of fiscal 2025,” said the company in the press note announcing its quarterly results.
Why is HP laying off employees
Tech industry across the world is seeing layoffs as the likes of Amazon, Meta, Microsoft, Intel all have announced that employees will be asked to leave. In the case of HP, the company announced a fiscal year 2023 Future Ready Transformation plan, which is expected to drive “significant structural cost savings through digital transformation, portfolio optimisation and operational efficiency.HP says that these actions — including layoffs — will result in annualised gross run rate savings of at least $1.4 billion by the end of fiscal 2025. “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 approximately equally between fiscal 2024 and 2025,” said HP in the press release
Revenues from all businesses down for HP
In the fourth quarterly results, HP revealed that its revenue was down 0.8% year-over-year. Further, revenue from laptops and computers segment was down 13% and stood at $10.3 billion. The revenue from printing segment was also down 7% at $4.5 billion. “Total hardware units were down 3% with Consumer units down 4% and Commercial units up 5%. Consumer net revenue was down 7% and Commercial net revenue was up 1%. Supplies net revenue was down 10% (down 10% in constant currency),” revealed HP in its quarterly results.
Why is HP laying off employees
Tech industry across the world is seeing layoffs as the likes of Amazon, Meta, Microsoft, Intel all have announced that employees will be asked to leave. In the case of HP, the company announced a fiscal year 2023 Future Ready Transformation plan, which is expected to drive “significant structural cost savings through digital transformation, portfolio optimisation and operational efficiency.HP says that these actions — including layoffs — will result in annualised gross run rate savings of at least $1.4 billion by the end of fiscal 2025. “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 approximately equally between fiscal 2024 and 2025,” said HP in the press release
Revenues from all businesses down for HP
In the fourth quarterly results, HP revealed that its revenue was down 0.8% year-over-year. Further, revenue from laptops and computers segment was down 13% and stood at $10.3 billion. The revenue from printing segment was also down 7% at $4.5 billion. “Total hardware units were down 3% with Consumer units down 4% and Commercial units up 5%. Consumer net revenue was down 7% and Commercial net revenue was up 1%. Supplies net revenue was down 10% (down 10% in constant currency),” revealed HP in its quarterly results.
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