HP has announced that it intends to cut 10% of its workforce as the company adjusts to falling demand for business computers Y mobile workstations as businesses around the world continue to recover from the Covid-19 pandemic.
The computer giant has revealed (opens in a new tab) its fiscal 2022 results, showing a fourth-quarter revenue decline of 14.8% compared to the same period last year.
The cuts, which will affect 4,000 to 6,000 employees, may expose problems not only for HP, but also for PC makers in general, as companies may be buying fewer PCs to accommodate a good hybrid work practices, and reduce technology stack costs in the midst of an ongoing recession.
HP cost reduction measures
As pointed out by Wall Street Journal (opens in a new tab)the layoffs come after HP expanded headcount by about 10,000 compared to this time last year.
However, the company has realized there are other ways to save money beyond wasting the lives of ordinary employees who are also trying to stay afloat in a cost-of-living crisis.
In what it calls its “Fiscal Year 2023 Future Ready transformation” and anyone else might call “a series of cost-cutting measures,” HP said it would save around “digital transformation, portfolio optimization, and operational efficiencies.”
One specific example he gave was taking advantage of plummeting demand for hardware by relying on slower, less expensive ocean freight deliveries instead of faster air freight.
HP’s announcement of new cost reduction strategies comes after the publication of data (opens in a new tab)showing that demand for PCs across the entire hardware manufacturing industry is declining at the fastest rate it has been in two decades, with no sign of stopping.