HP plans to lay off 400-600 jobs by the end of 2025 as the computer maker looks to cut costs by reducing its global headcount. The layoffs, part of a wider cost-cutting plan, come as the company reported weak commercial and consumer PC sales during the fourth quarter, which ended on October 31, 2022.
“The company expects to reduce its gross global headcount by approximately 4,000 to 6,000 employees,” HP said. “These actions are expected to be completed by the end of fiscal 2025.”
HP’s fourth-quarter revenue fell 11.2% year over year to $14.8 billion. Revenue in the Personal Systems segment, which includes PCs, dropped 13% to $10.3 billion, dragged down by a 25% decline in consumer revenue. Printing revenue, at $4.5 billion, was down 7% as units fell 3%.
HP had previously reported having a global headcount of some 51,000 employees. HP President and CEO Enrique Lores added in a statement that the company’s so-called “Future Ready strategy” 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.”
The news makes HP the latest in a growing list of once-high-flying tech companies that are now announcing significant job cuts. Facebook-parent Meta recently said it was cutting 11,000 jobs across the company, and Amazon (AMZN) confirmed last week that wide-ranging layoffs had begun at the e-commerce giant and would continue into next year.
Other companies in the technology sector have recently said they have plans for workforce reductions. Amazon confirmed in mid-November that it had started a round of layoffs that The Wall Street Journal reported could wind up totaling 10,000. Meta Platforms, Facebook’s corporate parent, announced earlier this month that it would be laying off over 11,000 employees. About a week before that, ride-share company Lyft announced a 13% workforce reduction, equating to roughly 683 employees.