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HP To Lay Off 6000 Employees Amid Falling PC Demand

(Image Credit Google)
The most recent tech business to announce significant layoffs is HP. The computer vendor is making adjustments as consumer demand for laptops and desktops declines following a spike in demand for computing products amid pandemic-related lockdowns and restrictions. HP disclosed on Tuesday that it will cut 4,000 to 6,000 jobs by the end of fiscal 2025 in its Q4 and fiscal 2022 results. In October of last year, HP employed around 51,000 employees, thus this week's statement is predicted to have an impact on 7.8 to 11.8 percent of HP's workforce. The decision was made as the pandemic-driven rise in PC demand began to decline. According to data released by Gartner last month, global PC shipments fell by 19.5% in Q3 2022 compared to Q3 2021, which is the largest decline since the early 1990s and the fourth consecutive quarter in which the market has experienced a decline year over year. [caption id="attachment_65494" align="aligncenter" width="1200"]HP Image credit: REUTERS[/caption] Data released by Gartner and IDC last month shows that HP suffered a decline in Q3 shipments from about 17.6 million units in 2021 to 12.7 million in 2022. According to HP, personal systems' net revenue for the fourth quarter decreased 13% year over year. Desktop unit sales fell by 3% while laptop unit sales dropped by 26%. Shipments of printing hardware units decreased by 3%, and printing net revenue likewise declined by 7%. However, both the personal computers and printing industries saw a significant growth in commercial net sales. HP CEO Enrique Lores stated that the business would utilise the cost savings to invest in growing industries, such as gaming, in an interview with Yahoo Finance. [caption id="attachment_65493" align="aligncenter" width="1200"]HP Image credit: cnet[/caption] The fact that HP is the second-largest PC vendor (according to Gartner and IDC's statistics) gives an overview of the financial difficulties PC companies are experiencing in the wake of the epidemic. PC shipments decreased for Lenovo, Dell, Asus, and Acer from Q3 2021 to Q3 2022, according to Gartner and IDC. Apple, however, stands out; according to IDC, the company sold more systems in Q3 of this year than Q3 of previous year (approximately 10.1 million) (about 7.2 million). Other PC manufacturers were also impacted by the decline in demand, including Intel, which announced plans to lay off thousands of workers, and Microsoft, which had two waves of layoffs this year. Also, Read:  Are Robots Really Snatching Jobs From Humans? Outside of personal computers, the larger tech industry is seeing significant job losses. In addition to Meta's over 11,000 layoffs this month and Tesla CEO Elon Musk's announcement of layoffs in June, Amazon is anticipated to eliminate 10,000 positions. Speaking of Musk and lost employment, the recent, well reported Twitter layoffs had a significant impact on the business, particularly its standing with customers and advertisers.

By Monica Green

I am specialised in latest tech and tech discoveries.

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