American Tech Giant HP Announces Plan To Layoff Upto 6,000 Employees Amid Demand Slowdown

After Meta, Microsoft, Intel, and Google¡¯s layoff news, another tech giant has joined the list of mass layoffs. American tech giant HP (Hewlett-Packard) said on Tuesday that it expects to cut up to 6,000 jobs by the end of the financial year 2025.

The 6,000 job cuts would account for about 12% of HP¡¯s global workforce , at a time when sales of personal computers and laptops are sliding as shoppers tighten budgets, as per a Reuters report.

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Gloomy Forecast

Indicating a gloomy forecast, HP¡¯s Chief Financial Officer Marie Myers said, "Many of the recent challenges we have seen in FY'22 will likely continue into FY'23."

HP also estimates that it will incur about $1.0 billion in labour and non-labour costs related to restructuring and other charges, with nearly $600 million in the financial year 2023 and the rest split between the following two years.

The company, which employs nearly 50,000 people, reportedly said that it expects to reduce headcount by between 4,000 and 6,000. HP shares are down over 20% this year.

PC sales have shrunk from the heights hit during the pandemic as households and businesses reduce spending in the face of decades-high inflation, putting pressure on companies such as HP and Dell Technologies.

Earlier on Monday, too, tech giant Dell reported a 6% fall in third-quarter revenue (June-September quarter). As per the report, Dell's Chief Financial Officer, Tom Sweet, said the ongoing macroeconomic factors, including inflation and rising interest rates, would weigh on customers next year.

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Warren Buffett¡¯s Investment In HP This Year

Earlier this year, 92-year-old Warren Buffett¡¯s company, Berkshire Hathaway, bought a stake in HP.

The stake was valued at more than $4.2 billion, according to a regulatory filing in April. Shares of HP reportedly surged as much as 10% after that revelation. Berkshire Hathaway¡¯s investment in HP ballooned to about 121 million shares after that stake purchase. A HP spokesperson reportedly said, "Berkshire Hathaway is one of the world¡¯s most respected investors, and we welcome them as an investor in HP."

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