# HP to cut about 12% jobs by end of fiscal 2025
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-23
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: HP Inc forecasts job cuts by 2025 amid profit concerns
Meta Description: HP plans to slash workforce by 12% due to declining PC sales, expecting lower profit and $1.0 billion restructuring costs over 3 years.
URL: https://financedigest.com/hp-to-cut-about-12-jobs-by-end-of-fiscal-2025html

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(Reuters) -HP Inc said on Tuesday it expects to cut up to 6,000 jobs by the end of fiscal 2025, or about 12% of its global workforce, at a time when sales of personal computers and laptops are sliding as shoppers tighten budgets.

The PC maker also forecast a lower-than-expected profit for the first quarter as it expects softness in both consumer and commercial demand.

“Many of the recent challenges we have seen in FY’22 will likely continue into FY’23,” said chief financial officer Marie Myers during a post-earnings call.

HP estimates it will incur about $1.0 [billion in labor and non-labor costs](https://www.financedigest.com/australias-nuclear-submarine-plan-to-cost-up-to-245-billion-by-2055-defence-official.html "Australia’s nuclear submarine plan to cost up to 5 billion by 2055 -defence official") related to restructuring and other charges, with nearly $600 million in fiscal 2023 and the rest split between the following two years.

The company, which [employs nearly 50,000 people](https://www.financedigest.com/uk-employment-sector-set-for-huge-shift-over-1-5-million-people-to-trade-in-full-time-work-for-the-gig-economy.html "UK employment sector set for huge shift: Over 1.5 million people to trade in full-time work for ‘the gig economy’"), said it expects to reduce headcount between 4,000 and 6,000.

The restructuring comes at a time when most companies including Amazon.com Inc, Facebook’s parent [Meta Platforms](https://www.financedigest.com/meta-to-wind-down-nfts-on-platforms-amid-crypto-bust.html "Meta to wind down NFTs on platforms amid crypto bust") Inc and Cisco Systems Inc are making deep cuts to their employee base to navigate a potential downturn in the economy.

HP [forecast current-quarter profit](https://www.financedigest.com/mercedes-benz-lifts-profit-forecast-as-luxury-cars-boom.html "Mercedes-Benz lifts profit forecast as luxury cars boom") between 70 cents and 80 cents. Analysts on average expect 86 cents, [according to Refinitiv data](https://www.financedigest.com/most-sales-and-marketing-teams-struggle-to-activate-data-in-their-organisation-according-to-new-international-study.html "Most Sales and Marketing teams struggle to activate data in their organisation, according to new international study").

PC sales have shrunk from the heights [hit during the pandemic as households and businesses reduce spending in the face of decades-high inflation](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc-2.html "UK shop price inflation hits record 8% in January: BRC"), putting pressure on companies such as HP and Dell Technologies Inc.

Earlier on Monday, Dell [reported a 6% fall in third-quarter revenue](https://www.financedigest.com/chinas-tencent-reports-first-revenue-drop-as-gaming-regulations-and-covid-19-bite.html "China’s Tencent reports first revenue drop as gaming regulations and COVID-19 bite"). The company’s Chief financial officer Tom Sweet said the ongoing macroeconomic [factors including inflation and rising interest rates would weigh on customers next year](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other").

HP also [reported a 11% fall in fourth-quarter revenue to $14.8 billion](https://www.financedigest.com/australias-macquarie-explores-6-billion-deal-for-britains-mg-sky-news-reports.html "Australia’s Macquarie explores  billion deal for Britain’s M&G, Sky News reports").

Shares of the Palo Alto, California-based company were up nearly 2% in extended trading.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Sriraj Kalluvila and Krishna Chandra Eluri)


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