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HP Layoff Plan: Tech company will eliminate 6 thousand jobs, know why

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HP Layoff Plan: The world’s renowned tech company Hewlett-Packard i.e. HP (HP Company) is planning to eliminate 6 thousand jobs in the coming years. In fact, keeping in mind the decreasing demand for personal computers and the continuously falling revenue, it was decided that Hewlett-Packard Company will reach 6,000 jobs in the next three years.

According to the company’s CEO Enrique Lores, HP will reduce its real estate footprint and cut 10 per cent of its 61,000 global employees over the next three years to control costs. Restructuring costs for the company are expected to total $1 billion, of which about 60 per cent will start coming down in the new fiscal year 2023. According to HP’s statement, it plans to save $1.4 billion annually by the end of fiscal year 2025.

Global PC shipments drop by nearly 20 percent

According to Lores’s estimate, 10 percent of computer sales can be seen during the current financial year. The third quarter saw a nearly 20 percent decline in global PC shipments, the biggest decrease since Gartner Inc. began tracking the data in the mid-1990s. Dell Technologies Inc., which generates 55 percent of its revenue from PC sales, on November 21 put forward a weak forecast for the current quarter and indicated that some customers have delayed purchases for the foreseeable future.

In recent weeks, many IT businesses have made their intentions clear by starting to reduce their workforce. Meta Platforms Inc. and Amazon.com Inc. began laying off approximately 10,000 employees, and Twitter Inc. laid off more than half of its 7,500 employees. While Cisco Systems Inc. Last week announced the reduction of jobs and office. Hard drive maker Seagate Technology Holdings Plc has also announced to reduce about 3,000 jobs.

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