HP plans to cut up to 6,000 jobs over the next three years, as declining demand for personal computers slashes its profits.
Personal computer sales shrank after the boom during the Corona pandemic, as households and companies cut spending in the face of high inflation for decades, which put pressure on companies such as HP and Dell.
In an attempt to reduce its expenses, HP, which employs about 50,000 people, announced that it expects to reduce the number of employees between 4 thousand and 6 thousand employees, or the equivalent of 12 percent of its global workforce, by the end of the 2025 fiscal year.
The restructuring of employees at HP comes at a time when most companies are making significant employee cuts, led by Amazon, Meta Platforms, the parent company of Facebook, and Cisco Systems, amid fears of an economic downturn. potential global.
HP reported a fourth-quarter loss of $2 million, compared to net income of $3.10 billion. Adjusted earnings were $0.85 per share, compared to $0.94 per share in the prior year-ago quarter. Revenue for the first quarter fell 11.2 percent to $14.80 billion from $16.68 billion a year earlier.
Looking at the first quarter, the company expects adjusted earnings in the range of $0.70 to $0.80 per share. For fiscal year 2023, HP now expects adjusted earnings between $3.20 and $3.60 per share.