HP says it intends to eliminate between 4000 to 6000 people from its workforce by 2025 after a tough fourth-quarter earnings report showed a year-over-year revenue drop of 11.2 per cent to US$14.8 billion.
Palo Alto based HP had approximately 51,000 global employees as of December 2021, according to a regulatory filing.
The company’s annual net revenue held at US$63 billion in 2022, a 0.8 per cent decline from 2021 net revenue.
Still, notebook sales fell 23 per cent to US$6.4 billion following an overall consumer PC market softening in 2022.
During a media briefing ahead of the company’s quarterly earnings conference call, HP chief executive Enrique Lores told CRN that channel partners could count on the company’s continued support despite cost-cutting measures.
“The channel is the way we go to market and how we manage the majority of our sales,” Lores said.
“So clearly, this is something we are going to be protecting to make sure that our channel partners continue to have the right relationships, the right connection, the right engagement with the company."
"Making sure we are close to our partners is even more important than ever.”
Lores said despite challenges, the company did see strong momentum in its growth portfolio, which grew to US$11 billion in fiscal year 2022 – about US$1 billion above its expected target.
“What’s really important is that this builds a strong foundation,” he said.
He said HP is “optimising our portfolio, continuing to invest in growth areas, and reducing the complexity in our core business.”
In a statement on earnings, HP’s Lores added, “We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half."
"Looking forward, the new Future ready strategy se introduced this quarter will enable us to better serve our customers and drive long-term value creating by reducing our costs and reinvesting in key growth initiatives to position our business for the future.”