PC maker HP to cut costs by cutting 6,000 jobs

Hewlett Packard (HP), one of the largest makers of computer hardware and printers, has announced plans to lay off about 6,000 workers over the next three years due to declining revenue. The company has about 61,000 workers. The goal is to reduce costs by about $1.4 billion over the next three years.

Some other big tech companies also announced mass layoffs this month. These include Amazon, Meta, which runs Facebook and Twitter. HP CEO Enrique Lores in a statement said A cost reduction plan will help the company better meet customer needs and increase long-term value. A company spokesperson said, “This is a very difficult decision for us because of the impact it will have on our colleagues. We are committed to treating people with compassion and respect.” The company’s quarterly revenue was down 11.2 percent.

Meta had announced layoffs of more than 11,000 employees. After Elon Musk, the world’s richest man, bought the microblogging site Twitter, nearly half of the company’s employees have been thrown out. Businesses of tech companies have grown rapidly during the pandemic and the impact has also been reflected in their valuations. Due to inflation and increase in interest rates, the valuation of these companies has come down significantly this year. Meta CEO Mark Zuckerberg said in a message to employees: “Weak macroeconomic conditions, increased competition and reduced advertising have caused our revenue to fall short of expectations. I made a mistake and I take responsibility for it.” He had said that the company needs to invest its resources in areas with high growth potential such as AI, advertising and metaverse projects.

Laid-off employees will be paid 16 weeks of base pay plus two additional weeks of base pay for each year of service. Apart from this, the company will also cover six months of healthcare expenses. Besides cutting essential expenses, Meta said he is also considering halting hiring till the first quarter of next year.

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