PC and printer major HP Inc is joining the ongoing tech layoff season and will lay off nearly 4,000-6,000 employees.
In the earnings report for its fourth quarter of 2022, the company said it expects to reduce gross global headcount by approximately 4,000-6,000 employees, which is between 7-11 per cent of its workforce.
“These actions are expected to be completed by the end of fiscal 2025,” HP said in a statement late on Tuesday.
The company announced a ‘Future Ready Transformation Plan’, estimating annualized gross run-rate cost savings of at least $1.4 billion by the end of fiscal 2025, and restructuring and other charges of approximately $1 billion.
HP Inc and its subsidiaries announced fiscal 2022 net revenue of $63 billion, down 0.8 percent from the prior-year period.
“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half. In Q4 we delivered on our non-GAAP EPS target, while also completing our three-year value creation plan and exceeding our key metrics,” said Enrique Lores, HP President, and CEO.
“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,” Lores said.
The Personal Systems net revenue was $10.3 billion, down 13 per cent year over year. The printing net revenue was $4.5 billion, down 7 per cent year over year, said the company.
The global PC market has had a rough year following a pandemic boom.
Declines continued for the traditional PC market as global shipments totalled 74.3 million units during the third quarter of 2022, down 15 per cent YoY.
The Indian traditional PC market declined by 11.7 per cent YoY with shipments of 3.9 million units in the September quarter after eight consecutive quarters of growth, according to the IDC.