In an attempt to cut annual costs by about $1.4 billion, Hewlett-Packard, the computer-manufacturing company, is planning to let go about 4,000 to 6,000 people from its workforce. This reduction in headcount will be carried out over a period of three years, given the unfavourable market conditions and volatility of the economic scenario.
It is expected that the move will make the firm ready for the future and place it in a better position to serve its customers. The strategy will also ensure creation of value in the long term, as costs will be reduced and reinvestment will be facilitated in growth initiatives.
During the pandemic, the sale of personal computers had surged with most employees working from home, and students kept away from schools and forced to study online. However, post the pandemic, the uncertain economic conditions have forced organisations across the world to look at reducing headcount and tech costs. This has resulted in the demand for personal computers dipping significantly.
The layoff will affect about 10 per cent of HP’s global workforce, which is about 61,000 strong.
The restructuring itself will cost HP about one billion dollars. By 2025, the Company expects to save about $1.4 billion a year.
There has been a string of layoffs in the tech space, with Alphabet, Google’s parent company being the latest to announce a reduction in headcount. Recently, Meta, Twitter and Cisco have also made headlines with their layoffs.