HP too joins layoff season, to cut up to 6000 jobs in next few years: Report | The Financial Express

HP too joins layoff season, to cut up to 6000 jobs in next few years: Report

The job cuts will happen globally accounting to nearly 12 per cent of the global workforce of the company.

HP too joins layoff season, to cut up to 6000 jobs in next few years: Report
HP too joins layoff season, to cut up to 6000 jobs in next few years: Report

After Twitter, Google, and Meta, now the American technology giant Hewlett-Packard Company (HP) wants to conduct layoffs in the company. The company on Tuesday announced that it is planning to slash up to 6000 jobs over the coming few years.

The job cuts will happen globally accounting for nearly 12 per cent of the global workforce of the company. The current known strength of HP stands at 51,000 members worldwide. The said mass layoff will happen over the next three years with final rounds to happen in 2025.

“These actions will result in annualized gross run rate savings of at least $1.4 billion by the end of the fiscal year 2025. The company estimates it will incur approximately $1.0 billion in labour and non-labour costs related to restructuring and other charges, with approximately $0.6 billion in the fiscal year 2023. The rest split approximately equally between the fiscal years of 2024 and 2025,” CNBC quoted the company.

HP CEO and President, Enrique Lores, stated that the company’s “Future Ready strategy” will “enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future.”

HP becomes the latest company to join the list of tech companies that are seemingly on a firing free in a bid to cut down costs in anticipation of an economic slowdown. Counterparts of HP like Amazon, Twitter and Meta have also announced mass layoffs recently while some are done with the removal process, some are still undergoing it, and some are already replacing required positions. There is no report of refilling the positions in HP yet. The procedure of the layoffs is also not clear yet. HP aims to achieve digital transformation, operational efficiency, structural cost saving and portfolio optimisation by future layoff.

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First published on: 23-11-2022 at 12:40 IST