HP Inc. executives announced plans to cut up to 10% of their workforce in the coming years while issuing weaker-than-expected earnings guidance Tuesday, with the computer maker’s chief executive citing “a volatile macro environment and softening demand in the second half, with a slowdown on the commercial side.”
Lores said the company is launching a three-year workforce reduction plan meant to shed 4,000 to 6,000 jobs, with more than half of the roughly $1 billion in restructuring costs expected to be realized in the new fiscal year. HP employed 51,000 workers at this time last year, when the fiscal year began; a previous workforce reduction plan announced in September 2019 sought to cut 7,000 to 9,000 employees through this fiscal year, and the current plan has a similar long-term aim.
“HP’s modest guide, coupled with an incredibly challenging macro for the PC and peripheral business, are a real concern and it is likely PC buying will be slower for the next four quarters and possibly longer, with the pandemic-driven refresh cycles that pulled a lot of demand forward,” Daniel Newman, principal analyst at Futurum Research, told MarketWatch.
HP reported a fiscal fourth-quarter net loss of $2 million, or less than a penny a share, down from net earnings of $3 billion, or $2.71 a share, in the year-ago quarter and missing management’s target for 44 cents to 54 cents a share. The loss was largely due to a $512 million noncash tax adjustment; after stripping out that charge and other costs, including restructuring charges, the company reported earnings of 85 cents a share.
So you actually mean that companies have to shed employees because a drop in fiscal earnings and a volatile macro-environment. Guess it’s ok if it’s not twitter and elonmusk right?
They blame it on 'macro' conditions lol. how these dumb companies are so afraid of the woke left that they scare to say Bidenflation