In a press release shared via the company website on Tuesday, the computer manufacturing firm stated that the lay-offs were part of its “Future Ready Transformation Plan,” to save costs and ensure “portfolio optimisation and operational efficiency”.
The transformation plan is expected to run its course till the end of 2025 fiscal year.
The statement read in part, “Today, HP Inc. announced a fiscal year 2023 Future Ready Transformation plan, driving significant structural cost savings through digital transformation, portfolio optimization and operational efficiency.
“The company estimates that these actions will result in annualized gross run rate savings of at least $1.4 billion by the end of fiscal 2025. The company estimates that it will incur approximately $1.0 billion in labor and non-labor costs related to restructuring and other charges, with approximately $0.6 billion in fiscal 2023, and the rest split approximately equally between fiscal 2024 and 2025.
“The company expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2025.”
The company’s announcement comes amid a slew of employee cuts in the global tech industry.
Following a take over by Elon Musk, microblogging platform, Twitter, announced and effected the lay off of about 50% of its global workforce earlier in the month.
This was closely followed by an announcement by social media giant, Meta, which said it was cutting 11,000 jobs from its global workforce.
Similarly, Amazon confirmed last week that it has begun the process of laying off 10,000 employees, which would continue into next year.
