HP will lay off up to 6,000 employees to save $1.4 billion.
The tech giant is the latest to confirm job cuts and will lose 4,000 to 6,000 members of staff, around 10 percent.
With this plan, the leading PC maker intends to achieve $1.4 billion in annual cost savings.
The California-based company now employs around 61,000 people.
CEO Enrique Lores said: “We think that at this point it’s prudent not to assume that the market will turn during 2023.”
The reduction and other changes will cost around $1 billion in upfront costs.
The PC market is facing a severe drop in demand, which is likely to last next year.
During the pandemic era, employees set up their home offices and students needed laptops for working remotely.
Now, consumers are shifting their spending patterns away from commodities as they worry about inflation and the economy.
Supply-chain bottlenecks, along with increased interest rates, ongoing inflation, and a stronger dollar, are making operations difficult and draining consumer spending.
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PC manufacturers are adjusting to a lower-demand scenario.
Intel launched a cost-cutting initiative last month and is exploring divestitures.
The chipmaker is attempting to handle the drastic drop in PC demand that has hit profitability.
Dell forecasts revenue from PC sales to decline even more in the fourth quarter compared to the same period last year.
Source: The Wall Street Journal