Bay Area tech mainstay HP to lay off up to 6,000 people

Submitted by Guilty-Ham t3_z6uil3 in wallstreetbets

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HP, the hardware tech company that remains a massive mainstay in the Bay Area, announced this week that it would conduct layoffs over the next three years — with a bulk of them happening this fiscal year.

As part of a restructuring plan HP calls the “Future Ready strategy,” the Palo Alto-headquartered computer and peripherals manufacturer hopes to save at least $1.4 billion by the 2025 fiscal year, according to its earning notice posted this week. Part of this plan is cutting up to 6,000 jobs by that point.

A majority of these layoffs, according to the earnings notice, will take place in the 2023 fiscal year — with “the rest split approximately equally between fiscal 2024 and 2025.” The company anticipates that it will spend about $600 million in “restructuring” in the 2023 fiscal year and $200 million each in 2024 and 2025.

These layoffs come during a tough time in the tech industry, as pandemic-induced demand for software and devices cooled in 2022. This stretch has hit hardware manufacturers especially hard, as demand for computers, printers and other peripherals spiked during the pandemic as people worked and attended school remotely. HP noted in its earnings report that revenue for its personal systems and printing divisions were both down this year.

“These are the toughest decisions we have to make, because they impact colleagues we care deeply about,” an HP spokesperson told SFGATE in a statement. “We are committed to treating people with care and respect – including financial and career services support to help them find their next opportunity.” The spokesperson did not specify what severance benefits affected employees will receive.

This round follows a wave of layoffs in 2019, when HP laid off around 9,000 people. Cisco, a fellow Silicon Valley stalwart, laid off 4,000 employees last month.

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VisualMod t1_iy35rbf wrote

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^^WSB ^^Stats ^^Discord ^^BanBets ^^VoteBot ^^FAQ ^^Leaderboard ^^- ^^Keep_VM_Alive >TL;DR: HP is planning to lay off up to 6,000 employees over the next three years as part of a restructuring plan. The majority of the layoffs will take place in the 2023 fiscal year. This comes during a tough time in the tech industry, as pandemic-induced demand for software and devices cooled in 2022.

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VisualMod t1_iy35ro7 wrote

>This is terrible news for the people who are going to be laid off. I hope they can find new jobs quickly.

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poppin_pandos t1_iy3705a wrote

Is there anywhere collecting job titles and project areas of all these layoffs? Are they all the History and English majors of the tech industry or what?

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bored_in_NE t1_iy3orbk wrote

Tech companies especially in Silicon Valley are ridiculously overstaffed which is why we saw so many vids from employees talking about going to yoga class after eating free food provided by the company. Silicon Valley is the only place where you can find top engineers making $500k asking junior employees venmo them $20 for lunch.

EDIT: Interest rates going up is going to give a lot of the companies a reality check that they have to get profits soon instead of living off VC money.

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Specimen_7 t1_iy486au wrote

And they increased their dividends 😂

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tavsquid t1_iy4vk6l wrote

All these companies act like they never saw it coming. They thought they'd swim in cash, what, forever? Fucking short-sighted greed. And now people will suffer for it, as always.

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justvims t1_iy7amms wrote

I forgot HP even existed. What do they sell?

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justvims t1_iy7bhkx wrote

Replying to Guilty-Ham (#757,722)

Weird. Seems like they should be hiring 6000 people instead of letting them go! We need shitty printers, keyboards, and desktops despite nobody buying them anymore.

1