Hewlett-Packard is planning to cut up to 6,000 jobs by the end of fiscal 2025, or about 12% of its global workforce, the company said Tuesday.
The PC and printer maker also forecasted a lower-than-expected profit for the first quarter, as sales of personal computers and laptops are sliding.
After booming at the start of the pandemic, PC sales have plunged as households and businesses reduce spending in the face of decades-high inflation.
HP, which employs nearly 50,000 people, said it expects to reduce headcount between 4,000 and 6,000.
“Many of the recent challenges we have seen in FY’22 will likely continue into FY’23,” said CFO Marie Myers on a post-earnings call.
In a statement, HP said its “Future Ready Transformation plan” should result in annualized gross run rate savings of $1.4 billion or more in the next three years, with around $1 billion in costs including restructuring.
HP forecast current-quarter profit between 70 cents and 80 cents. Analysts on average expect 86 cents, according to Refinitiv data. The company also reported a 11% fall in fourth-quarter revenue to $14.8 billion.
The restructuring comes when most tech companies are making cuts to their staff or freezing hirings as they brace for a potential downturn in the economy.