The tech company announced on Tuesday that HP plans to cut more than 6,000 employees from its workforce.
HP said it would reduce its global workforce by 4,000 to 6,000 employees over the next three years as part of its “future ready transformation plan”. That size reduction would shrink the 51,000-employee company by about one-tenth.
While HP did not specify whether it plans to reduce the workforce through layoffs or attrition, the announcement mentioned severance costs and early-retirement expenses.
HP estimated it would pay $1 billion to laid-off employees or early retirees over the next three years, while saving “at least” $1.4 billion through reduced spending – for a net savings of $400 million over three years.
In the year that just ended, HP spent $4.3 billion to buy back its shares, according to its financial statements, and returned $1 billion to shareholders in dividends.
The company did not immediately respond to a request for comment on the restructuring.
The enterprise technology giant is the latest company to cut workers as the economy suddenly slows. Amazon confirmed last week that it would cut the sameFrom its instruments and book divisions. facebook and instagram parent is meta Or 13% of its employees, while Twitter’s workforce has declined by about 5,000 people since Tesla CEO Elon Musk took over the company.
Other tech companies including Carvana, Cisco, Lyft, Meta and Stripe have also announced layoffs recently, while more have paused hiring.