HP reportedly cuts thousands of jobs as the demand for PC falls. The sale of enterprises’ PC falls as global economic worries continue to persist.
HP Reportedly Cuts Thousands of Jobs
HP has just announced that it plans to cut 10% of its workforce as the company tries to adjust to the falling demand for business computers and mobile workstations as enterprises everywhere continue ot recover from the covid-19 pandemic.
The computing giant has just recently revealed its results for the 2022 fiscal year showing further quarter revenue down 14.8% in contrast to the same period in the previous year.
The Cuts Will Impact Anywhere From 4,000 to 6,000 Employees
The cuts however which will impact anywhere from 4,000 to 6,000 employees may lay struggles bare for not just HP but also for manufacturers of PC at a larger scale as companies continue to be buying less equipment in a bid to accommodate good hybrid working practices and cutting tech stack costs in regards to the ongoing recession.
The Mass Layoffs Is Coming After HP Expanded Its Workforce by Around 10,000 Workers
Just as noted by The Wall Street Journal, the mass layoffs is coming after HP expanded its workforce by around 10,000 workers in contrast to this time in the previous year. The company however has realized that there are many other ways to save money beyond throwing the lives of ordinary employees and also trying to stay afloat in a cost-of-living crisis at the moment.
In what it refers to its “Fiscal year 2023 Future Ready transformation” and anyone else might refer to as “a slew of cost-cutting measures”, HP had claimed that it would make savings across around “digital transformation, portfolio optimization, and operational efficiency”.
One specific instance it shared was that it was taking advantage of the slow demand for hardware simply by relying on the less expensive, slower sea freight deliveries as opposed to the much faster air freight.
The Demand for PC across the Whole Hardware Manufacturing Industry Is Falling Off At a Quick Rate
The announcement of HP of new cost-cutting strategies and plans comes just after the publication of data showing that the demand for PC across the whole hardware manufacturing industry is falling off at the fastest rate that it has seen in two decades with no sign of slowing down or stopping. Evidence of this can be seen in the recent reports by the Wall Street Journal that Intel and Advanced Micro Devices (AMD) also are turning to cost-cutting measures in a bid to ease the economic strain.
