HP to lay off 6,000 workers over the next three years

Computer company HP announced Tuesday that it will lay off approximately 6,000 workers over the next three years. The company published in a statement that it will shed 10% of its workforce in the next three years: "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."

With the layoffs, HP Inc. expects to save a total of $1.4 billion by the end of fiscal year 2025. The plan, as explained in a press release by CEO Enrique Lores is part of the company's Future Ready strategy. The plan, which involves ideas such as subscription-based services, will enable HP "to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future."

The layoffs come at a bad time for the Palo Alto, Calif.-based company. The reports that HP presented on Tuesday regarding the last fiscal year, which closed this October, were concerning to say the least. According to the statement, the company grossed $63 billion in the last fiscal year, representing a decrease of 0.8% from the past year. Profits dipped to just 3.2 billion, half of what the company earned last year.

The report further details that HP computer sales fell by 13% (10.3 billion) while printer demand fell by 7% (4.5 billion). This represents a total decrease of 11% compared to the previous year.

All these results lead to HP, which has some 61,000 employees worldwide, planning to cut ties with a significant part of its workforce. This adds to the wave of layoffs that companies such as Twitter, Amazon and Meta have implemented in recent weeks.