The latest technological business to declare its intention to trim down in light of economic difficulties is HP, a manufacturer of computers.
Salesforce, Microsoft, and Meta, the parent company of Facebook, are a few more companies that have made modifications.
4,000-6,000 people would be let go by the corporation over the next three years, it announced on Tuesday.
Following the news, shares climbed as much as 1% in extended trade.
In a statement, HP claimed that its “Future Ready Transformation plan” would save the company at least USD 1.4 billion annually in the next three years in terms of annualized gross run rate, with reorganization costs totaling about USD 1 billion.
Of the USD 1 billion, USD 600 million will come from the fiscal year 2023, which runs from October 1, 2023, to October 31, 2023.
HP said the remaining funds would be distributed equally between the fiscal years 2024 and 2025.
HP, on the other hand, is taking action in response to a decline in computer sales. As individuals hurried to work and play from home, the COVID-19 pandemic first caused a PC buying frenzy.
In the fiscal fourth quarter, which ended on October 31, HP reported a 0.8% year-over-year decline in revenue to USD 14.80 billion.
PCs are included in the Personal Systems segment, which saw a 13% decline in revenue to USD 10.3 billion and a 21% decline in unit sales.
The segment’s consumer revenue fell by 25%. At USD 4.5 billion, printing revenue was down 7% as units dropped 3%.
HP projected adjusted earnings per share for the 2023 fiscal year of USD 3.20 to USD 3.60, less than the USD 3.62 per share Refinitiv estimate.
Revenue from Personal Systems and Printing both fell 3% and 6% from the prior quarter, respectively.
The company reported adjusted first-quarter earnings between 70 and 80 cents per share, falling short of the Refinitiv-surveyed analysts’ consensus estimate of 86 cents.
According to HP, the operating margin for the Personal Systems division decreased from 6.9% in the previous quarter to 4.5%.
The tech giant had a workforce of 51,000 employees as of October 2021. HP disclosed in 2019 it would lay off 7,000-9,000 employees.