US personal computer and printer maker HP announced Tuesday that it will lay off between 4,000 and 6,000 employees by 2025. The company currently employs about 61,000 employees, up 10,000 from a year ago.
“This new strategy (…) will allow us to better serve our customers and create long-term value by reducing our costs and reinvesting in key areas for the future,” the spokesperson said. Through layoffs, she hopes to save $1.4 billion a year (roughly the equivalent in euros) over the next three years.
Sales and profits are falling
This is the latest tech group to launch a social plan this fall. Recently, its Silicon Valley neighbors Meta (Facebook, Instagram), Twitter, Lyft (driver-driven car booking platform), Salesforce and Stripe (online financial services) announced significant layoffs.
While the Covid-19 pandemic has largely benefited the tech sector, the economic crisis has affected its companies, some of which have hired heavily, betting on strong growth over time.
In fiscal year 2022, which ended at the end of October, HP’s turnover was $63 billion, down 0.8% year-on-year. This generated a net profit of $3.5 billion, which was halved in a year. His forecast for the current quarter was also disappointing. On Wall Street, the American Stock Exchange, its name lost about 1% in electronic trading after the close.