HP Inc. is the newest tech firm to announce main layoffs. This is what number of jobs its planning to chop

HP Inc.’s layoffs, which characterize almost 10% of its present workforce, are a part of a broader cost-cutting plan that comes amid declining gross sales and a souring financial system. On Tuesday, the corporate stated fourth quarter income had dropped 11.2% from the identical interval a yr earlier, to $14.8 billion. 

The corporate partly blamed weak desktop laptop gross sales, an issue impacting corporations throughout the PC trade in latest months. Fourth-quarter gross sales in HP Inc.’s division that features computer systems dropped 13% year-over-year to $10.3 billion, pushed largely by a 25% decline in shopper income.

In a press release, HP Inc. CEO Enrique Lores described it as a “risky macro-environment” and cited “softening demand” for his firm’s merchandise over the past six months.  

HP Inc.’s layoffs coincide with a wider retrenchment by the tech sector resulting from rising recession fears introduced on by excessive inflation and excessive rates of interest. Final week, Amazon introduced 260 layoffs and hinted that there’d be extra subsequent yr, saying the financial system was in a “difficult spot”. Some stories say Amazon plans to put off as much as 10,000 staff. 

Earlier this month, Fb dad or mum Meta stated it might lower 11,000 staff. In the meantime, Twitter, after being acquired in October by Tesla CEO Elon Musk, laid off greater than half of its workforce. And final month, Microsoft introduced layoffs throughout a number of divisions. 

HP’s newest layoffs come greater than three years after earlier job cuts in 2019 of seven,000 to 9,000 staff. 

With out immediately addressing the newest layoffs, Lores informed the Wall Road Journal that he’s making ready for a downturn that would final at the very least into 2024, saying “it’s prudent to not assume that the market will flip throughout 2023.” 

The layoffs, plus a discount within the firm’s actual property footprint, are anticipated to save lots of the corporate $1.4 billion in annualized spending by the top of 2025’s fiscal yr. It expects the restructuring to value round $1 billion.

A spokesperson for HP Inc. informed Fortune that the layoffs are “the hardest choices, as a result of they affect colleagues we care deeply about. We’re dedicated to treating folks with care and respect—together with monetary and profession providers assist to assist them discover their subsequent alternative.”