US tech giant Hewlett Packard plans up to 6,000 job cuts
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PC-maker Hewlett Packard on Tuesday said it would layoff as many as 6,000 employees over the next three years as the slumping world economy continues to embroil the US tech sector.
HP, which has a payroll of about 61,000 people, said it aimed to secure $1.4 billion in annual savings through 2025 as it followed the cost-cutting path of other tech giants such as Facebook-owner Meta, Amazon and Twitter.
The plan “will enable us to serve our customers better and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future,” HP CEO Enrique Lores said in a statement.
Meta said earlier this month it will lay off more than 11,000 of its staff and Twitter saw half of its 7,500-strong employees culled just days after billionaire Elon Musk took over the company in late October.
“These are the toughest decisions we have to make, because they impact colleagues we care deeply about. We are committed to treating people with care and respect…” an HP spokesperson said in an email to AFP.
HP, which makes computer hardware and printers, announced the layoff plan as it announced an 11.2 percent fall in revenues to $14.8 billion for the final fiscal quarter of 2022.
Questions & Answers
Q.How many employees will be affected by these job cuts?
How many employees will be affected by these job cuts?
Hewlett Packard plans to lay off as many as 6,000 employees. This represents nearly 10% of their total payroll of about 61,000 people.
Q.When will these job cuts take place?
When will these job cuts take place?
The company stated that the layoffs will occur over the next three years. This cost-cutting measure is part of a plan extending through 2025.
Q.What is the financial goal of these layoffs for Hewlett Packard?
What is the financial goal of these layoffs for Hewlett Packard?
HP aims to secure $1.4 billion in annual savings through 2025. This cost reduction is intended to enable reinvestment in key growth initiatives.
Q.Why is Hewlett Packard implementing these job cuts now?
Why is Hewlett Packard implementing these job cuts now?
The company cited the slumping world economy affecting the US tech sector. They also announced an 11.2% fall in revenues for the final fiscal quarter of 2022.
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