HP will lay off 4,000 to 6,000 employees worldwide over the next three years

Enrique Lores, CEO, HP

Scott Mlyn | CNBC

computer manufacturer HP Inc. said in a statement on Tuesday that it plans to cut 4,000 to 6,000 employees over the next three years.

The computer maker is the latest tech company to announce plans to downsize in the face of economic challenges. Facebook parent Meta, Microsoft and Salesforce are among those making similar changes.

HP expects the changes to result in annual gross operating rate savings of at least $1.4 billion over the next three years, with approximately $1 billion in costs including restructuring. Of that $1 billion, $600 million will come in fiscal 2023, which ends October 14. January 2023. The remainder will be split evenly between fiscal years 2024 and 2025, HP said.

In October 2021, HP had around 51,000 employees. In 2019, HP announced it would cut between 7,000 and 9,000 employees.

Also on Tuesday, HP announced a bleak earnings forecast.

The company delivered a range of first-quarter adjusted earnings for the first quarter of 70 cents to 80 cents per share, below the consensus of 86 cents among analysts polled by Refinitiv.

For fiscal 2023, HP was calling for adjusted earnings per share of $3.20 to $3.60, below the Refinitiv consensus of $3.62 per share.

This is breaking news. Please check back for updates.

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