Wednesday, November 23, 2022

Hewlett Packard, a US technology behemoth, intends to lay off approximately 12% of its workforce


US tech giant Hewlett Packard plans to cut about 12% jobs

SAN FRANCISCO: HP Inc said on Tuesday it hopes to eliminate up to 6,000 positions toward the finish of fiscal 2025, or about 12% of its global labor force, at when sales of personal PCs and laptops are sliding as customers fix spending plans.

The PC maker also forecast a lower-than-expected profit for the principal quarter as it anticipates softness in both consumer and commercial demand.

"Many of the new challenges we have seen in FY'22 will probably continue into FY'23," said CFO Marie Myers during a post-earnings call.HP estimates it will incur about $1.0 billion in labor and non-labor 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, which utilizes nearly 50,000 individuals, said it hopes to reduce headcount somewhere in the range of 4,000 and 6,000.

The restructuring comes at when most companies including Inc, Facebook's parent Meta Platforms Inc and Cisco Frameworks Inc are making profound slices to their worker base to navigate a potential decline in the economy.

HP forecast current-quarter profit between 70 pennies and 80 pennies. Analysts on average anticipate 86 pennies, according to Refinitiv data.

PC sales have contracted from the levels hit during the pandemic as families and businesses reduce spending in the face of decades-high inflation, putting tension on companies like HP and Dell Advances Inc.

Earlier on Monday, Dell reported a 6% fall in second from last quarter income. The company's CFO Tom Sweet said the ongoing macroeconomic factors including inflation and rising interest rates would burden customers one year from now.

HP also reported a 11% fall in final quarter income to $14.8 billion.

Shares of the Palo Alto, California-based company were up nearly 2% in extended trading.

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