In its earnings report for the fourth quarter of 2022, the company said it expects to reduce its total global headcount by approximately 4,000-6,000 employees, or 7-11% of its workforce.
Posted on – Wed 23 Nov 22 at 01:00pm
Palo Alto: PC and printer giant Hewlett-Packard is joining the ongoing season of technology layoffs, cutting nearly 4,000-6,000 employees.
In its earnings report for the fourth quarter of 2022, the company said it expects to reduce its total global headcount by approximately 4,000-6,000 employees, or 7-11% of its workforce.
“These actions are expected to be completed by the end of fiscal year 2025,” HP said in a statement late Tuesday.
The company announced a “future-proof transformation plan” that estimates annualized gross margin cost savings of at least $1.4 billion by the end of fiscal 2025, and about $1 billion in restructuring and other charges.
Hewlett-Packard Co. and its subsidiaries announced fiscal 2022 net income of $63 billion, down 0.8% from a year earlier.
“Our fiscal year ended despite a volatile macro environment and weak demand in the second half. In the fourth quarter, we achieved our non-GAAP EPS target while also completing our three-year run of value creation We planned and exceeded our key metrics,” said Enrique Lores, HP President and CEO.
“Looking forward, our new ‘future-ready’ strategy launched this quarter will allow us to better serve our customers and drive long-term value creation by reducing costs and reinvesting in key growth initiatives to position our business for the future ,” Lores said.
Personal Systems net revenue was $10.3 billion, down 13% year-over-year. Printing net revenues were $4.5 billion, down 7% year-over-year, the company said.
The global PC market has had a tough year after a pandemic boom.
The traditional PC market continues to decline, with global shipments totaling 74.3 million units in the third quarter of 2022, down 15% year-on-year.
According to IDC, India’s traditional PC market shipped 3.9 million units in the September quarter, down 11.7 percent year-on-year, after eight consecutive quarters of growth.
