Hewlett-Packard (HP) could lay off more than 6,000 employees by the end of fiscal year 2025, cutting its global workforce by about 12%, the computer maker said Tuesday, according to Reuters.
This comes at a time when the PC and laptop market is experiencing a slowdown. To cope, HP expected to cut between 4,000 and 6,000 jobs. The company currently has about 50,000 employees.
HP expects both commercial and consumer demand for its product to decline further and expects lower earnings for the first quarter. “Many of the recent challenges we’ve seen in FY’22 are likely to continue into FY’23,” HP chief financial officer Marie Myers said during a post-earnings call.
The company estimates it will incur approximately $1.0 billion in non-labor and labor costs associated with restructuring and other costs. HP expects to make $600 million of these in fiscal year 2023 and the rest in subsequent years.
The lack of demand for PCs has also affected Intel Corp, which plans to significantly reduce its workforce. According to those in the know, the chipmaker is expected to cut its workforce by the thousands. Intel has 1,13,700 employees as of July this year.
The company could lay off about 20% of its staff in some departments, including the sales and marketing group. It is witnessing a sharp drop in demand for PC processors, which is its main activity. It is struggling to regain the market share it has lost to rivals such as Advanced Micro Devices Inc. In July, Intel warned that 2022 sales would be about $11 billion lower than previously expected.
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