HP is the latest company to announce layoffs, saying it will let 4,000 to 6,000 employees go over the next three years.
Layoffs have been hitting the tech industry hard as lower consumer demand, combined with supply chain issues, have taken a toll on many companies operations. HP has announced a number of changes, as part of its “Future Ready Transformation” plan, including layoffs.
Unlike many companies that are laying off thousands in one fell swoop, HP said in a statement that its layoffs will occur over a three-year period, ending in 2025.
Today, HP Inc. announced a fiscal year 2023 Future Ready Transformation plan, driving significant structural cost savings through digital transformation, portfolio optimization and operational efficiency. The company estimates that these actions will result in annualized gross run rate savings of at least $1.4 billion by the end of fiscal 2025. The company estimates that it will incur approximately $1.0 billion in labor and non-labor costs related to restructuring and other charges, with approximately $0.6 billion in fiscal 2023, and the rest split approximately equally between fiscal 2024 and 2025. 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.