HP, Bay Area tech mainstay, to lay off up to 6,000 people

HP, the hardware tech company that remains a massive mainstay in the Bay Area, announced this week that it would conduct layoffs over the next three years — with a bulk of them happening this fiscal year.

As part of a restructuring plan HP calls the “Future Ready strategy,” the Palo Alto-headquartered computer and peripherals manufacturer hopes to save at least $1.4 billion by the 2025 fiscal year, according to its earning notice posted this week. Part of this plan is cutting up to 6,000 jobs by that point.

A majority of these layoffs, according to the earnings notice, will take place in the 2023 fiscal year — with “the rest split approximately equally between fiscal 2024 and 2025.” The company anticipates that it will spend about $600 million in “restructuring” in the 2023 fiscal year and $200 million each in 2024 and 2025. 

These layoffs come during a tough time in the tech industry, as pandemic-induced demand for software and devices cooled in 2022. This stretch has hit hardware manufacturers especially hard, as demand for computers, printers and other peripherals spiked during the pandemic as people worked and attended school remotely. HP noted in its earnings report that revenue for its personal systems and printing divisions were both down this year.

“These are the toughest decisions we have to make, because they impact colleagues we care deeply about,” an HP spokesperson told SFGATE in a statement. “We are committed to treating people with care and respect – including financial and career services support to help them find their next opportunity.” The spokesperson did not specify what severance benefits affected employees will receive.

This round follows a wave of layoffs in 2019, when HP laid off around 9,000 people. Cisco, a fellow Silicon Valley stalwart, laid off 4,000 employees last month.

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