US tech giant HP company will cut the size of its workforce in the next three years
Dublin: Computer company HP is planning to cut jobs in the wake of reduced business. It is suggested that the company is forced to lay off employees due to a decrease in demand for personal computers. Enrique Lores, the company’s chief executive officer, stated in an interview that the company has decided to reduce the total number of employees by 10%. The company employs 61,000 people.
With the decrease in sales, there has been a huge decrease in the company’s profit margin. Therefore, he stated that 6,100 employees would be laid off over the next three years.
As per the CEO, the company expects a 10% decline in computer sales for the fiscal year and a very challenging market environment.
The computer market crashes.
HP is a computer manufacturer. On the other hand, the market demand for PCs is steadily declining. The company is experiencing a significant business slowdown. The industry analyst Gartner Inc. reveals that the global PC shipments have decreased by about 20 percent in the third quarter of this year. According to him, this is the largest drop since the mid-1990s. Dell Technologies Inc., which derives 55% of its revenue from PC sales, also saw a drop in sales. “This is a true picture of the printing and PC markets,” said Woo Jin Ho, an analyst at Bloomberg Intelligence.
The layoff is still ongoing.
The woes of IT workers started when tech companies like Twitter, Meta, and Amazon recently cut their workforces. Both Meta and Amazon have laid off over 10,000 employees. Twitter laid off 3700 workers as well. In addition, Wipro announced that it would reduce its workforce. Yesterday, hard drive manufacturer Seagate Technology Holdings Plc announced 3,000 job cuts. Cisco Systems Inc. has also announced that it will expand offices and lay off employees.
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