The announcement was made in connection with the publication of the annual results of HP, which closed its accounts on October 31. The world’s second-largest computer maker has embarked on a massive workforce reduction program that calls for 4,000 to 6,000 job cuts by 2025. Therefore, around 12% of the group’s 50,000 employees are affected by the measure. HP did not specify which geographies were affected.
The previous plan dates back to 2019, eliminating more than 7,000 jobs. The new measure is part of a $1.2 billion savings plan. HP is also looking to reduce the weight of its property charges, while the group posted annual results below its forecasts. With this move, HP adds its name to the already long list of American technology companies that are cutting their workforce: Amazon, Meta, Twitter, Stripe… In total, more than 55,000 people working at these groups lost their jobs to begin with. of the year.
Its turnover decreased by only 0.8% during the twelve months, reaching 63 billion euros. But this hides the sharp decline in activity in the last three months of the year (-11.2%). The annual result of the company decreased by 30%, reaching 4.5 billion dollars. The group is bearing the brunt of a fall in demand for PCs and printers after two years of increased purchases of computer equipment. In 2020 and 2021, households and businesses flocked to computers and printers to work and learn remotely. The market turn was sharp. Well equipped, consumers and professionals now face the economic crisis and make choices about their spending. PC sales for the public fell 25% in the last quarter, while businesses fared relatively better, with a decline of just 6%. This translates to a 25% decline in notebook PC sales and a 3% drop in desktop PCs, which are more commonly used in professional environments.
HP isn’t the only one concerned. The whole market has fallen. Since the beginning of the year, the sale of computers has been decreasing. In the third quarter, they fell by 19.5%, which is the sharpest decline ever recorded by the company Gartner, which monitors the evolution of this market since the early 1990s. HP is the brand that recorded the biggest decline (-27.9%). within a year), 12 million computers were sold worldwide. Its rival and market leader Lenovo saw its sales fall by just 15% year over year, with 17 million PCs sold in the last three months. The Chinese group opened its first plant in Europe in Hungary, with production starting in June 2022, allowing it to limit supply disruptions due to logistical difficulties.
HP’s other big business, printing, is in no better shape. The sale of printers also decreased by 7%, and that of consumer goods by 10%. We have to believe that we type less when we go to school.
Source: Le Figaro
I am Ben Stock, a passionate and experienced digital journalist working in the news industry. At the Buna Times, I write articles covering technology developments and related topics. I strive to provide reliable information that my readers can trust. My research skills are top-notch, as well as my ability to craft engaging stories on timely topics with clarity and accuracy.