HP is the Latest Tech Company to Have Mass Layoffs

Earlier this month, HP announced a $1.4 billion cost-cutting plan for the next four years, which may be a big step in the right direction for the PC maker. The plan is part of a broader plan to build connected experiences through digital platforms. HP plans to eliminate at least 4,000 jobs by the end of 2025.

The company’s fiscal 2020 plan includes a series of headcount reductions, a strategic portfolio optimization and digitalization of end-to-end processes. HP also plans to re-align its staffing mix to focus on its strongest businesses.

In the fourth quarter, HP saw revenues drop by 11.2 percent compared to the same period last year. HP’s personal-systems segment, which includes desktops, notebooks and printers, saw revenue fall by 13%, while consumer and commercial PC revenue decreased by 25% and 6%, respectively.

HP is also looking to get leaner in the face of slowing PC demand. A new two-year wage-pact will see workers receive a 5.2% pay hike starting in June of 2023. HP is also looking to slash expenses by cutting costs through automation and other means.

For example, HP reported that it had a net change of $852 million in cash at the end of the quarter. The company also saw an increase in its free cash flow, which is the cash generated by operations minus investments in property plant and equipment. It also reported an impressive $3.9 billion in free cash flow last year.

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