An American multinational information technology company, HP is planning to lay off nearly 4000 to 6,000 employees.
This layoff is nearly around 12 percent of the company’s global workforce. HP currently employs nearly 50,000 people as of December 2021. The company has planned this layoff up till the end of fiscal 2025.
“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half. In Q4 we delivered on our non-GAAP EPS target, while also completing our three-year value creation plan and exceeding our key metrics,” said Enrique Lores, HP President, and CEO.
“Looking forward, the new Future Ready strategy we introduced this quarter will enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future”, Enrique Lores added.
The statement read, “The company expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2025.”
HP becomes the latest to join the bandwagon of tech companies going for mass layoffs to cut costs ahead of an impending recession. The IT companies have cut out jobs and slowed down the hiring process due to slow global economic growth caused by higher interest rates, and rising inflation.
Recently Google said that it is planning to fire nearly 10,000 employees. The layoffs will be on the grounds of ‘poor performance’. Most Recently, Twitter laid off 50% of its employee strength which is nearly 3500 post the Elon Musk takeover. Followed by Meta laying off 11000 employees. Cisco will be laying off more than 4,000 employees.
There are many leading IT companies that either laid off employees or froze new hiring including Snap, TikTok, Salesforce, and HCL Technologies.