HP has announced that it intends to cut 10% of its workforce as the company adjusts to lower demand business computers And the mobile workstations As businesses everywhere continue to recover from the Covid-19 pandemic.
The computing giant has open (Opens in a new tab) The results of the fiscal year 2022 showed a decrease in revenues for the fourth quarter by 14.8% compared to the same period last year.
The cuts, which will affect anywhere from 4,000 to 6,000 employees, could spell difficulties not only for HP, but for PC manufacturers in general, as companies may buy less equipment to accommodate good products. Hybrid work practices, and Reduce technology stack costs In the middle of a recession.
HP’s cost-cutting measures
As noted before Wall Street Journal (Opens in a new tab)The mass layoffs come after HP expanded its workforce by about 10,000 workers compared to this time last year.
However, the company has realized that there are other ways to save money other than throwing out the lives of regular employees who are also trying to stay afloat in the cost of living crisis.
In what it calls “Future Transformation Ready 2023 Fiscal Year” and anyone else might call it “a raft of cost-cutting measures,” HP claimed it would generate savings through “digital transformation, portfolio improvement, and operational efficiencies.”
One specific example you gave was taking advantage of lower demand for hardware by relying on cheaper, slower ocean freight shipments rather than faster air freight.
HP’s announcement of new cost-cutting strategies comes after HP’s publication data (Opens in a new tab)It shows that demand for computers across the hardware manufacturing industry is declining at its fastest rate in two decades, with no sign of stopping.
Proof of this lies in the recent Wall Street Journal reports Intel (Opens in a new tab) And the advanced micro devices (Opens in a new tab) (AMD) is also turning to cost-cutting measures in order to ease economic pressures.