Computer giant HP is planning to lay off between 4,000 and 6,000 employees over the next three years. The company made its cost-cutting decision known in a press release to investors on Tuesday.
Other tech leaders like Meta, Microsoft, Salesforce and Twitter have reached similar decisions to cut its workforce significantly as they prepare for rough days ahead.
During the pandemic, HP had seen a significant increase in computer sales as people set up systems to work from home and play games. However, with things returning to normal, those sales have fallen.
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The computer maker says that its plan could help save about $1.4 billion in the coming three years. It expects to start seeing results by 2023, claiming that about $600 million would have been saved in gross run rate by October of the year. What this could mean is that most of the layoffs could happen in 2023.
HP’s fiscal 2022 reports were poor with a net revenue of $63.0 billion, down 0.8% from the prior-year period. Its fourth quarter net revenue of $14.8 billion was down by 11.2% compared to the same period in 2021.
“Looking forward, the new Future Ready strategy we introduced this quarter 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,” Enrique Lores, HP President and CEO, said.
The company’s shares increased by 1% on Tuesday after its reassuring statement to investors, CNBC reports.
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