The recent tech business to announce significant layoffs is HP. The computer company is adjusting as customers demand and need for laptops decreases following a spike in demand for computing items during pandemic-related lockdowns and restrictions.
HP disclosed Tuesday that it will cut 4,000 to 6,000 positions in the end of fiscal year 2025 in its Q4 and fiscal year 2022 reports.
In October of last year, HP hired around 51,000 employees; thus, this week’s statement is predicted to impact 7.8 to 11.8 percent of HP’s workforce.
The Data released recently by Gartner and IDC shows that the HP has faced a major decline in Q3 shipments from about 17.6 million in year 2021 to 12.7 million in 2022.
According to the official statement of HP, personal systems’ net revenue for the fourth quarter decreased by almost 13% every year. The Shipments of printing hardware units decreased by 3%, and net printing revenue declined by 7%. However, the personal computers and printing industries saw significant growth in net commercial sales.
In a conversation with YAHOO FINANCE, HP CEO Enrique Lores stated that the business would utilize the cost savings to invest in growing industries, such as gaming.
HP is the second-largest PC vendor provides overview of the financial problems PC companies are facing in the wake of the epidemic. According to Gartner and IDC, PC shipments reduced for Lenovo, Dell, Asus, and Acer.
The industry leader is seeing significant job losses. In addition to Meta’s over 11,000 layoffs this month and Tesla CEO Elon Musk’s announcement of layoffs in June, Amazon is anticipated to eliminate 10,000 positions. Speaking of Musk and lost employment, the recent, well-reported Twitter layoffs significantly impacted the business, particularly it’s standing with customers and advertisers.