HP to layoff up to 6,000 staff globally in the next 3 years

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The tech layoffs continue as HP becomes the next company after Meta, Snap, Alphabet, and Salesforce to reduce its headcount. The IT firm plans to cut its global employee headcount by about 4,000 to 6,000 by the end of 2025.

The layoffs are part of its 2023 Future Ready Transformation plan announced alongside its Q4 financial performance recently. The plan aims to drive significant structural cost savings through digital transformation, portfolio optimisation and operational efficiency. HP estimates that these actions will result in annualised gross run rate savings of at least US$1.4 billion by the end of fiscal 2025.

At the same time, the company also estimates it will incur about US$1.0 billion in labour and non-labour costs related to restructuring and other charges, with approximately US$0.6 billion in fiscal 2023, and the rest split approximately equally between fiscal 2024 and 2025.

HP's spokesperson in Singapore told MARKETING-INTERACTIVE that the workforce reduction is the toughest decision the company has had to make because it impacts colleagues the company cares deeply about. While the spokesperson declined to disclose any Singapore details, the spokesperson said: "We are committed to treating people with care and respect – including financial and career services support to help them find their next opportunity."

The spokesperson added that the new Future Ready strategy will enable HP to better serve its customers and drive long-term value creation by reducing its costs and reinvesting in key growth initiatives to position the business for the future.

According to CNBC, HP's shares rose 1% in extended trading after the announcement. As of October last year, the company had about 51,000 employees. Three years ago, it said it would cut about 7,000 to 9,000 employees, CNBC said.

HP's net revenue for Q4 2022 dipped 11.2% to US$14.8 billion. Personal Systems net revenue was US$10.3 billion, down 13% YoY, while consumer net revenue dipped 25% and commercial net revenue decreased 6%. Meanwhile, printing net revenue was $4.5 billion.