Hewlett-Packard (HP) will eliminate 6,000 positions and 10% of its global staff to address the “challenging market situation.”

In response to the diminishing demand for personal computers that have reduced revenues, HP Inc. may axe up to 6,000 employees. 

The Hewlett-Packard Company (HP) will eliminate up to 6,000 positions over the next three years in response to declining personal computer demand that has decreased revenues. The majority of HP’s revenue comes from the sale of personal computers, which has been declining steadily. It began with low-end consumer items and has subsequently spread as firms reduce their workforce and cut back on technological spending.

In order to decrease expenses, Hewlett-Packard Company will downsize its global workforce of 61,000 employees by up to 10% over the next three years, according to CEO Enrique Lores. The corporation anticipates restructuring expenses of $1 billion, with around 60% of those expenses occurring in the recently begun the fiscal year 2023. By the conclusion of the fiscal year 2025, HP estimates that the plan will have saved as much as $1.4 billion annually.

According to data compiled by Bloomberg Businessweek, analysts had an average expectation of $3.61 per share. Free cash flow will be less than expected, coming in at about $3.25 billion. According to a statement from Hewlett-Packard Company, earnings would, barring certain circumstances, range from $3.20 to $3.60 per share for the fiscal year that ends in October 2023. 

The company anticipates a “difficult market climate,” according to Lores, but a 10% decline in computer sales for the fiscal year.

The third quarter saw a decline in global PC shipments of almost 20%, which is the largest decrease since Gartner Inc. began tracking the data in the middle of the 1990s. Dell Technologies Inc., which generates 55% of its revenue from selling PCs, presented a lacklustre forecast for the current quarter on November 21 and indicated that some customers had delayed purchases for the foreseeable future.

Several IT companies have announced plans to decrease their workforces in recent weeks. About 10,000 employees were let go by Meta Platforms Inc. and Amazon.com Inc., and Twitter Inc. cut more than half of its 7,500-person workforce. While hard drive manufacturer Seagate Technology Holdings Plc. said it would cut about 3,000 jobs, Cisco Systems Inc. revealed last week a plan to close offices and eliminate an unspecified number of jobs.