New round of layoffs! Now HP will also show the way out to about 6000 employees, but why? , Zee Business

Concerns remain due to the possibility of recession worldwide. Its biggest impact is on technology companies. Because the decrease in demand is directly affecting the income of the companies. As a result, tech companies are taking drastic measures including laying off employees to reduce costs. After Twitter, Facebook, Amazon, the name of laptop and printer maker HP has also been added to these tech companies. The company is planning to lay off about 10 percent of its employees by next year.

Why is HP laying off?

In the information given in the exchange filing, the company said that in the September quarter, the company’s income registered a decline of more than 11 percent. The company’s revenue in the third quarter stood at $14.8 billion. The major reason for the decline in income was the decline in the demand for personal computers. However, Dell (DELL), another company in the same sector, also saw a 6 per cent decline in its earnings in the third quarter. Apart from this, a decline of up to 17 percent was recorded in the sale of laptops and desktops.

How much will HP benefit from layoffs?

According to statistics, the demand for personal computer (PC) remained weak in October. The pace of decline in demand was the highest in two decades. Till the September quarter, the total number of employees of HP stood at 61 thousand. According to the company’s plan, if there is a 10 percent cross cut, then about 4-6 thousand employees can be retrenched. Now in the process of cost reduction, if there is other action including retrenchment, then one to one and a half billion dollars can be saved. The company said that there is a slowdown in the personal computer market after Corona.

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Tech companies are doing heavy layoffs

Due to the effect of recession, Google has announced to lay off 10,000 employees. The names of Meta (META), Amazon (AMAZON) are also included in this episode. Earlier, Enel Musk, the world’s richest businessman, had made a large number of layoffs after the acquisition of Twitter.

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