Thousands of employees will lose their jobs at HP (HPQ) in the coming three years as the company continues its efforts to cut costs, according to a Bloomberg report. The company plans to reduce its global workforce by 4,000 to 6,000 employees by the end of the fiscal year in 2025. HP will also cut its real estate footprint and spend about $1 billion in restructuring charges, according to the report.
HP’s chief executive, Enrique Lores, said the company is facing a challenging market environment. He said HP will need to cut costs and that “headwinds to long-term growth” will be around for “a while.”
HP has been dealing with a slump in PC demand for several years, and executives said the company is taking steps to cut costs. HP reported an 11% decline in sales in the fourth quarter of last year. HP also forecast lower-than-expected profits for the first quarter of this year, and its forecast for fiscal year 2023 was below analyst estimates.
HP expects to see a softening in consumer and commercial demand, and it expects inflation to rise. It expects to see a decline in PC sales of around 10 percent in fiscal year 2023. HP will cut its global workforce by 4,000 to 6,000 by the end of the fiscal year in 2025, and its annual costs will fall by about 1.9 trillion won. HP is also focusing on new lines of business, such as subscription services and printer paper, as well as exploring other products.