After Amazon, Twitter and Meta, it was HP’s turn to announce on Tuesday, November 22, that it was going to downsize its workforce. The computer and electronics company, famous for its range of printers and computers, is preparing to reduce its payroll against a backdrop of economic contraction after the pandemic break.
This social plan should concern between 4,000 and 6,000 employees by 2025, according to the firm, which currently has nearly 61,000 employees.
In conjunction with this announcement, HP released its results for 2022. Revenue for the fiscal year, ending at the end of October, amounted to $63 billion, down 0.8% year-on-year. The fourth quarter of the 2022 financial year was particularly weak: down 11.2% compared to the same previous period, it stood at 14.8 billion dollars.
A slowdown in post-pandemic demand
HP underlines the “volatility of the macro-environment and the slowdown in demand in the second quarter” in its press release to justify the difficulties encountered over the period.
HP defends its “new Future Ready strategy” for 2023, which aims 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 “, explains Enrique Lores, president and CEO of the group.
The group intends to “achieve significant structural savings through digital transformation, portfolio optimization and operational efficiency”. The social plan is expected to achieve gross annual savings “of at least $1.4 billion by the end of fiscal year 2025,” the company said.