HP will cut 6,000 jobs (10% of the total) by 2025

HP too Joins the growing wave of layoffs in the tech sector: The company announced plans to Reducing their workforce by 10%., which currently has approximately 61,000 employees globally. In short, About 6,000 seats will be cut from work. He says the process will be gradual bloombergIt will take place over the next three years. According to the source, the mentioned reason is the low demand for computers, which has negatively affected HP accounts.

The company’s top executives expect a “tough market” and PC sales to contract by 10% for the full fiscal year. As often happens, the first signs were seen at the low end of the global consumer market, but they were short-lived It has expanded to include more prestigious teams as well as the corporate world (The “dog chasing its own tail” effect is quite evident here: companies would obviously buy fewer computers if they drastically cut their number of employees.)

As has already been noted on many occasions, the technology sector is in the “later” phase of the anomalous wave that was the COVID-19 pandemic: at first, confinement and working from home pushed PC sales a lot (but in general for almost every consumer an electronic product), But Now that we’re back in the office, in stores and generally outdoors, demand has inevitably collapsed.

According to the latest data from Gartner, PC shipments in the third quarter of 2022 totaled 68 million units, a A contraction of at least 19.5% compared to the same period of the previous year. It’s the worst number since Gartner began tracking the industry in the mid-1990s. For context, it’s worth noting that PC shipments grew a whopping 55% in 2021, again year over year.

By 2025, HP expects to save up to $1.4 billion year in costs. To address losses in the PC sector, the company says it will try to target new segments, especially in terms of subscription services. It could also start producing paper for printers.

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