US tech giant Hewlett Packard (HP) has revealed plans to cut up to 6,000 jobs or about 12% of its workforce across all the firm’s global locations, in order to reduce costs. HP is also shifting its focus into cloud computing services, which have seen an increase over recent years.
“Many of the recent challenges we have seen in FY22 will likely continue into FY23,” Marie Myer, chief financial officer of HP said.
The company estimates it will incur about $1 billion dollars (SGD1.37 billion) worth of labor and non-labor costs, with nearly 600 million coming from fiscal 2023 alone, which is over half their total budget for this year.
It also plans on reducing headcount between 4,000 and 6,000 by moving certain jobs overseas or laying off workers entirely if needed.
The tech industry has seen its sales shrink due largely because households and businesses alike have been cutting back on spending; this puts pressure onto companies like HP.