PC maker HP to cut costs by laying off 6,000 workers

Hewlett Packard (HP), one of the largest companies making computer hardware and printers, has informed about laying off about 6,000 workers in the next three years due to a decrease in revenue. The company has around 61,000 workers. It aims to reduce costs by about $1.4 billion over the next three years.

Some other big tech companies also announced massive layoffs this month. These include Amazon, Meta, which runs Facebook, and Twitter. HP CEO Enrique Lores in a statement Told The cost reduction plan will help the company to better meet customer needs and enhance value over the long term. A company spokesperson said, “This is a very difficult decision for us as it will impact our co-workers. We are committed to treating people with compassion and respect.” The company’s quarterly revenue decreased by 11.2 percent.

Meta had announced to lay off more than 11,000 staff. Nearly half of the company’s workforce has been thrown out after the world’s richest man Elon Musk bought the microblogging site Twitter. The business of tech companies grew rapidly during the pandemic and its impact was also seen on their valuations. The valuations of these companies have declined significantly this year due to increase in inflation and interest rates. meta Chief Executive Officer Mark Zuckerberg told employees in a message, “Weakening macroeconomic conditions, increasing competition and reducing advertising have resulted in our revenue being much lower than anticipated. I made a mistake and I take responsibility for it.” ” He had said that the company needs to invest its resources in areas with high potential for growth such as AI, advertisements and the Metaverse project.

The laid off staff will be given 16 weeks base pay plus two additional weeks base pay for each year of service. Apart from this, the company will also pay for six months of healthcare cost. Meta said that it is also planning to stop hiring till the first quarter of next year along with reducing non-essential expenditure.