HP to cut up to 6,000 jobs by end of fiscal 2025

(Reuters) -HP Inc said on Tuesday it expects to reduce its global headcount by about 4,000 to 6,000 by the end of fiscal 2025.

The PC maker estimates it will incur about $1.0 billion in labor and non-labor costs related to restructuring and other charges, with nearly $0.6 billion in fiscal 2023 and the rest split between the following two years.

The restructuring comes at a time when most companies including Amazon.com Inc (NASDAQ:), Facebook (NASDAQ:)’s parent Meta Platforms Inc and Cisco Systems Inc (NASDAQ:) are making deep cuts to their employee base to navigate a potential downturn in the economy.

The company forecast current-quarter profit between 70 cents and 80 cents. Analysts on average expect 86 cents, according to Refinitiv data.

Shares of the company were down 1.2% in extended trading.

PC sales have shrunk from the heights hit during the pandemic as households and businesses tighten spending in the face of decades-high inflation, putting pressure on companies such as HP (NYSE:) and Dell Technologies (NYSE:) Inc.

Earlier on Monday, Dell reported a 6% fall in third-quarter revenue. The company’s Chief financial officer Tom Sweet said the ongoing macroeconomic factors including inflation and rising interest rates would weigh on customers next year.

HP also reported a 11% fall in fourth-quarter revenue to $14.8 billion.

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