Another major tech company has decided to cut jobs. Laptop and electronics manufacturer HP Inc is expected to cut around 6,000 jobs. However, the company has decided to spread out the layoffs up till the end of fiscal 2025. The layoffs will account for around 12 per cent of the company’s global workforce.
HP Inc currently employs nearly 50,000 people. The company has announced that it will sack around 4,000 to 6,000 employees in the coming years.
HP made the announcement during its fiscal 2022 Full Year report. The statement read, “The company expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2025.”
The decision to cut jobs comes amidst lower sales in the PC and laptop segment after the dramatic spike during the pandemic. The inflation and recession worries in global markets could also be one of the deciding factors. In view of these conditions, HP Inc has expectations of a lower-than-expected profit for the first quarter which will be triggered by weak demand.
HP generated $4.5 billion in net cash provided by operating activities and $3.9 billion of free cash flow in fiscal 2022. Free cash flow includes net cash provided by operating activities of $4.5 billion adjusted for net investments in leases of $155 million and net investments in property, plant, and equipment of $765 million.
HP Inc. made this announcement as part of the Future Ready Transformation Plan. It estimates annualized gross run-rate cost savings of at least $1.4 billion by the end of fiscal 2025, and restructuring and other charges of approximately $1.0 billion.
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