View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Policy
  2. Big Tech
November 23, 2022

HP plans up to 6,000 layoffs as PC market slows down

Falling demand for PCs and printers has hit revenue, leading HP executives to take action to cut costs.

By Matthew Gooding

HP is the latest big tech company to announce mass layoffs, with up to 6,000 jobs set to go over the next three years. The company is blaming the slowdown in the PC market for the cuts.

HP layoffs are planned by the company
HP is blaming the PC market slowdown for plans to cut jobs. (Photo by Framesira/Shutterstock)

The news was announced as part of HP’s quarterly financial results late on Tuesday, which saw the company unveil a transformation strategy dubbed “Future Ready” which will help it reduce costs. As of last year the company, which specialises in PCs and printers, employed 51,000 people worldwide.

Why HP is making layoffs

HP’s results for the three months to the end of October show that the company’s revenue declined 0.8% year-on-year to $14.8bn. However, in its personal systems segment, which provides the bulk of company income, revenue was down 13%, to $10.3bn.

The income drop reflects falling demand for PCs following the boom during the Covid-19 pandemic, where companies and consumers were buying new equipment at unprecedented levels to facilitate remote working and home schooling. Now, with countries moving out of Covid-19 restrictions and businesses dealing with the impact of rising inflation and interest rates, this demand has fallen. Gartner said last month shipments had fallen 19.5% globally.

HP has concluded that cost savings need to be made, and it says changes under the Future Ready strategy will help it save $1.4bn a year, though it will also incur $1bn in restructuring costs. Between 4,000-6,000 roles will be cut, the company said.

“Looking forward, the new Future Ready strategy we introduced this quarter will enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future,” said Enrique Lores, HP president and CEO.

Tech job cuts continue across big-name businesses

The news means HP is the latest of tech’s big names to announce job cuts in recent months. Last week Amazon said it would lay off up to 10,000 staff, while Facebook parent company Meta had already started a process which will make 11,000 staff made redundant.

Content from our partners
How businesses can safeguard themselves on the cyber frontline
How hackers’ tactics are evolving in an increasingly complex landscape
Green for go: Transforming trade in the UK

Like HP, chipmaker Intel blamed the PC market slowdown when it was revealed last month that it was making “thousands” of staff redundant.

Other businesses are feeling the pinch, too. Salesforce has let hundreds of staff go, while payments company Stripe and ride-hailing service Lyft said earlier this month they would be laying off 14% and 13% of their respective workforces.

The most high-profile job cuts have come at Twitter, where new owner Elon Musk decided to cull half of the company’s staff as he looks to cut costs following his $44bn takeover. Musk reportedly had a change of heart over some roles after workers were apparently fired in error.

Read more: Oracle cuts ‘thousands’ of jobs in ailing CX business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU