HP to cut up to 6,000 jobs over three years

Hewlett-Packard (HP Inc.) is struggling. As a result of a drop in demand for personal computers, the company's profits have fallen. HP had to reduce the number of jobs. About 6 thousand people will be laid off within three years.

HP said Tuesday that earnings per share for this fiscal year (ending in October 2023) will be $3.2-3.6 and free cash flow is estimated to be $3.25 billion. Both figures are below forecasts. According to Bloomberg analysts, forecasts on average said earnings of $3.61 per share.

CEO Enrique Lores said the company expects PC sales to drop by 10% in the current fiscal year as the market situation becomes more difficult.

PC sales have been a major source of revenue for HP, however, demand has fallen. At first, Lawrence said, the decline in demand was reflected in sales of relatively inexpensive consumer products. As companies cut jobs and reduce investments in technology, the decline in demand becomes noticeable in other industries as well.

According to a Gartner Inc. study, PC shipments fell 20% in Q3. Gartner has been tracking the figure for more than 30 years, during which shipments have never declined so much. Dell said Monday that the current quarter won’t please either the company or investors. It's worth noting that the company gets more than half of its revenue from PC sales.