HP’s performance in the market ain’t living up to the company’s expectation. As such, HP has announced that it will be cutting 3,000 to 4,000 jobs over the next three years, on top of the 3,000 jobs that is expected to be axed by the end of fiscal year 2016.
Chief Executive for HP Dion Weisler has mentioned that the decision to cut more jobs comes as the company faces pressure and uncertainties from a volatile market. “Our core markets are challenged and macro economic conditions are in flux right now,” says Weisler. With the layoffs, HP has said that it expects to generate a gross annual run rate savings of USD200 million to USD300 million, beginning in the fiscal year 2020.
Part of the reason why HP has decided that layoffs were necessary to the company’s survival can be traced back to declining PC sales numbers. According to Gartner, worldwide PC shipments in Q3 has fallen by 5.7 percent. This marks the eighth consecutive quarter that PC shipment has declined, making it the longest duration of decline in the history of the PC industry.
Source: Reuters