HP laying off 4,000-6,000 employees globally over the next three years

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Enrique Lores, CEO, HP

Scott Mlyn | CNBC

Computer maker HP Inc. said in a statement Tuesday that it plans to cut 4,000 to 6,000 employees over the next three years.

The computer maker is the latest technology company to announce its intent to slim down given economic challenges. Facebook parent Meta, Microsoft and Salesforce are among those that have made similar changes.

HP expects the changes to result in annualized gross run rate savings of at least $1.4 billion in the next three years, with around $1 billion in costs including restructuring. Of that $1 billion, $600 million will come in the fiscal 2023 fiscal year, which ends Oct. 31, 2023. The rest will be split evenly between the 2024 and 2025 fiscal years, HP said.

As of October 2021, HP had around 51,000 employees. In 2019 HP announced that it would eliminate between 7,000 and 9,000 employees.

Also on Tuesday HP announced downbeat earnings guidance.

The company provided a range of adjusted fiscal first quarter earnings from 70 cents to 80 cents per share, below the consensus of 86 cents among analysts polled by Refinitiv.

For the 2023 fiscal year, HP called for $3.20 to $3.60 in adjusted earnings per share, below the Refinitiv consensus of $3.62 per share.

This is breaking news. Please check back for updates.

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