Photo credit: www.entrepreneur.com

HP Announces Layoffs Affecting Up to 2,000 Employees

HP Inc., a major player in the computer and printer industry, has revealed plans to lay off as many as 2,000 employees from its global workforce of approximately 58,000. This announcement was made public in an SEC filing on Thursday.

The company stated, “HP expects incremental gross workforce reductions of approximately 1,000 to 2,000 employees.” The adjustments will vary across different countries, depending on local legal stipulations and necessary consultations with employee representatives, as appropriate.

The layoffs are anticipated to take place before the conclusion of HP’s fiscal year 2025, which is set to wrap up in October. The workforce reductions are projected to help the company achieve savings of up to $300 million, according to the filing.

Details regarding which departments will be impacted remain undisclosed. During a conversation with Bloomberg on Friday, CEO Enrique Lores indicated that the layoffs would be widespread throughout the organization. Lores emphasized that the company is being “very selective and very strategic” in determining where cuts will occur.

Additionally, Lores mentioned that the strategy is not solely focused on reductions. He stated, “It’s not only cuts; we are also doing rebalancing. At the same time, we’re investing in other areas.” High-priority investment sectors include artificial intelligence (AI) and enhancing the customer experience.

These layoffs are part of HP’s broader cost-cutting initiative known as “Future Now,” which was launched in November 2022. Originally, the initiative aimed for workforce reductions of around 7,000. Following this latest announcement, the total number of anticipated layoffs could increase to 9,000, totaling an estimated savings of $1.9 billion.

The announcement regarding job cuts coincided with the release of HP’s fiscal first quarter 2025 earnings, which showed a net revenue increase of 2.4% year-over-year, amounting to $13.5 billion.

As HP continues to navigate the rapidly changing technology landscape, the implications of these layoffs may resonate throughout the industry, particularly as the company adapts to shifting market demands and focuses on strategic investments for future growth.

Source
www.entrepreneur.com