Let’s talk about why HP is downsizing. In order to respond to the declining demand for corporate PCs and mobile workstations as businesses around the world continue to recover from the Covid-19 outbreak, HP has indicated that it plans to reduce its workforce by 10%.
The computer behemoth has released its 2022 fiscal year results, showing fourth-quarter revenues down 14.8% from the same time last year.
The layoffs, which might affect 4,000 to 6,000 workers, could expose challenges not just for HP but for PC makers as a whole, as businesses may be purchasing less equipment to support healthy hybrid working methods and reducing tech stack expenditures in the midst of an extended recession.
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HP is downsizing: efforts to minimize costs
According to The Wall Street Journal, HP increased its employment by almost 10,000 employees since this time last year.
However, the corporation has come to the conclusion that there are alternative methods to cut costs outside of taking the lives of common workers who are also struggling to survive during a rising cost of living crisis.
HP said it will save money in the areas of “digital transformation, portfolio optimization, and operational efficiency” as part of its “The fiscal year 2023 Future Ready transformation,” which anyone else could refer to as “a spate of cost-cutting initiatives.”
One example it cited was using slower, less expensive sea freight deliveries rather than speedier air freight to take advantage of the drop in hardware demand.
After statistics revealing that PC demand across the whole hardware manufacturing business is tumbling at the fastest rate, it has in two decades with no prospect of halting was published, HP announced new cost-cutting methods.
The WSJ’s recent claims that Intel and Advanced Micro Devices (AMD) are also turning to cost-cutting methods in order to lessen economic pressure provide evidence for this.