The computer selling company HP has now announced its plan to cut jobs by the end of its 2025 fiscal year, hence, becoming the latest tech giant to take the strict move to minimise its operating costs.
The tech giant announced its decision during its post-earnings call and a report submitted by Reuters says that the company will likely lay off nearly 6,000 employees, which is equivalent to roughly 12 per cent of its global workforce.
According to the HP's chief financial officer Marie Myers the sales of PCs are sliding nowadays, which therefore becomes the reason to look at, and also allows the company to revise their operational cost.
During the post-earnings call, Myers said that several recent challenges of 2022 would likely to continue to in FY 2023. The report further highlights that HP might incur about $1.0 billion in labour and non-labour costs related to restructuring and other charges, "with nearly $600 million in fiscal 2023 and the rest split between the following two years".
The company currently has roughly 50,000 workers, and the restructuring would lead to 4,000 to 6,000 job losses. It remains unclear which departments would be impacted by the layoffs.
HP also issued a statement and said, "As part of the actions we are taking, we will be reducing the size of our workforce by 4,000-6,000 people over the next three years. These are the toughest decisions we have to make, because they impact colleagues we care deeply about. We are committed to treating people with care and respect – including financial and career services support to help them find their next opportunity".