HP also announces the layoff of a large number of its employees. The redundancies are expected to affect more than 6,000 workers worldwide.
HP also announces the layoff of a large number of its employees. The redundancies could affect about 10% of the IT giant ‘s workforce , equal to more than 6,000 employees. Today, HP employs more than 61,000 employees and managers worldwide.
Layoffs should be announced in stages. The process will therefore be gradual and should extend over a period of three years. This would be a structural change, made necessary by the decrease in PC demand over the years. A trend – that of lower demand for laptops and desktops – that doesn’t seem destined to change even in the coming years.
HP executives expect the economic picture to continue to be unfavorable through at least 2023. This should translate into a contraction in sales of at least ten percentage points.
Thanks to the redundancy plan, HP expects to save up to 1.4 billion dollars a year by 2025. Savings that should offset the collapse in consumer market demand. But that won’t be enough: the company will also have to review its entire strategy, focusing on new segments and, perhaps, extending its presence on still unexplored markets, for example by focusing more on subscription services.