New Delhi. The sound of recession is starting to be heard from tech companies around the world. Retrenchment has created ruckus in many big companies. Sometime back, after the layoffs in Twitter, Meta, Amazon, another big tech company has decided to cut jobs. Laptop and electronics maker HP Inc is expected to cut about 6,000 jobs. The relief, however, is that the company won’t be laying off all at once. Rather this phase of layoffs may continue till the end of 2025. According to the report, with this retrenchment, the company is going to cut its global workforce by about 12 percent.
The company will continue layoffs till 2025
Let us tell you that HP is one of the largest companies among tech companies. HP Inc. is currently providing employment to around 50,000 people. The company has announced that it will lay off around 4,000 to 6,000 employees in the coming years. The special thing is that the company has announced the layoffs during the presentation of its financial year 2022 report. The statement said, “The company expects to cut around 4,000-6,000 employees. This process of retrenchment is expected to be completed by the end of 2025.
The decision was taken after the decline in the sale of laptops
Amid reports of mass layoffs in the company, company sources have claimed that there was a dramatic jump in sales of HP’s laptop and computer devices during the Corona pandemic. But after the school offices opened after the pandemic, the PC and laptop segment sales once again fell flat. Due to the rapidly decreasing sales, the decision to cut jobs has come from the company.
Is the fear of global recession haunting tech companies
Big tech companies are listening to the call of recession at this time. Worries of inflation and recession in global markets can also be one of the deciding factors for layoffs by companies. Given these conditions, HP Inc. is expected to report lower-than-expected profits in the first quarter given weak demand. Although the company has not yet clarified when this layoff will start in other global markets including India.