HP Inc (HPQ.N) said on Tuesday that it intends to lose up to 6,000 positions by the end of fiscal 2025, or about 12% of its worldwide staff, at a time when sales of personal computers and laptops are declining as consumers tighten their belts. The PC maker also forecasts lower-than-expected profits in the first quarter due to softening consumer and commercial demand.
HP anticipates $1.0 billion in labour and non-labour expenditures related to restructuring and other charges, with almost $600 million in fiscal 2023 and the remainder spread across the next two years. The corporation, which employs about 50,000 employees, stated that it aims to decrease staff by 4,000 to 6,000 individuals.
The downsizing comes at a time when most corporations, including Amazon.com Inc (AMZN.O), Facebook’s parent company Meta Platforms Inc (META.O), and Cisco Systems Inc (CSCO.O), are laying off thousands of employees to prepare for an economic downturn.
HP anticipates a current-quarter profit of 70 cents to 80 cents.
According to Refinitiv statistics, analysts estimate to 86 cents on the dollar. PC sales have fallen from their peak during the epidemic as people and businesses cut down on spending in the face of decades-high inflation, putting pressure on companies such as HP and Dell Technologies Inc.
Dell announced a 6% drop in third-quarter sales earlier on Monday.
According to the company’s Chief Financial Officer, Tom Sweet, persistent macroeconomic concerns such as inflation and rising interest rates will have an impact on consumers next year.
