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Why HP plans to lay off 6,000 employees? Here’s everything you need to know

HP CEO Enrique Lores said that the plan we have decided to walk on will drive long-term value creation.

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New Delhi: The American tech giant, Hewlett Packard, HP on Tuesday shared a shocking news update of laying off as many as 6,000 of its total employees. HP’s spokesperson termed it to be the toughest decision that allows impacts colleagues of the employees. Notably, this is one of the biggest layoffs after other tech giants announced such as Facebook-owned Meta, Amazon, and Twitter.

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However, the question here rises how did HP come to the toughest decision? Let’s find the answer below here:

HP currently has about 61,000 people as its employees. With the layoff of 6,000 employees, the PC maker has planned secured $1.4 billion (roughly Rs 11,447 crore). However, employees will be released in different faces over the next three years.

The company gave the reason for its layoff to the major expected downfall in the US tech sector. In his statement, HP CEO Enrique Lores said that the plan we have decided to walk on will drive long-term value creation by reducing ”our costs and reinvesting in key growth initiatives” to compete in the market in the future.

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From the side of the company, the spokesperson said, ”We are committed to treating people with respect and care.”

Notably, the latest decision by HP came after it registered a fall of 11.2% in its revenues to $14.8 billion (roughly Rs 1,21,050) in the last quarter of 2022.

Earlier, Meta announced laying off more than 11,000 of its staff. Besides, Twitter removed its 7,500 employees soon after Elon Musk took over the company.

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