HP Inc will eliminate at least 6,000 jobs amid falling demand for personal computers that has cut profits.
Hewlett-Packard Company (HP) will cut up to 6,000 jobs over the next three years in response to declining demand for personal computers, which has reduced revenue. HP has been facing a steady decline in the market for personal computers, which accounts for most of its revenue. As businesses downsized and cut technology spending, it began with low-end consumer goods and has since spread.
According to CEO Enrique Lores, HP will reduce its real estate footprint and cut up to 10% of its 61,000 global workforce over the next three years to control costs. Restructuring costs for the company are expected to total $1 billion, with approximately 60% of the cost beginning in the new fiscal year 2023. 2025.
Analysts on average were expecting $3.61 per share, according to information collected by Bloomberg. Free cash flow will amount to roughly $3.25 billion, which is lower than expected. In the fiscal year ending October 2023, HP expects earnings per share of $3.20 to $3.60, excluding certain factors, HP said in a statement.
While the company expects a "challenging market environment," computer sales are predicted to decrease by 10% during the fiscal year, according to Lores.
The third quarter saw global PC shipments decline by nearly 20%, the biggest reduction since Gartner Inc. began tracking the data in the mid-1990s. Dell Technologies Inc., which generates 55% of its revenue from PC sales, presented a lackluster forecast for the current quarter on Nov. 21 and indicated that some customers have delayed purchases for the foreseeable future.
In recent weeks, several IT businesses have revealed intentions to downsize 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-person staff. While Cisco Systems Inc. Last week unveiled plans to cut an unspecified number of jobs and close offices, hard drive maker Seagate Technology Holdings Plc. announced that it would eliminate approximately 3,000 jobs.
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