HP to shed 6,000 jobs - unclear how Irish workforce will be impacted

The PC maker also forecast a lower-than-expected profit for the first quarter as it expects softness in both consumer and commercial demand. File picture: David Paul Morris/Bloomberg

HP has said it expects to cut up to 6,000 jobs by the end of 2025, or about 12% of its global workforce, at a time when sales of personal computers and laptops are sliding as shoppers tighten budgets.

The company has employed up to 4,000 people in this country. It is unclear how the job cuts announcement will impact the workforce here.

The PC maker also forecast a lower-than-expected profit for the first quarter as it expects softness in both consumer and commercial demand.

"Many of the recent challenges we have seen in FY'22 will likely continue into FY'23," said chief financial officer Marie Myers during a post-earnings call.

The company, which employs nearly 50,000 people, said it expects to reduce headcount between 4,000 and 6,000.

PC sales have shrunk from the heights hit during the pandemic as households and businesses reduce spending, putting pressure on companies such as HP and Dell Technologies.

HP's restructuring comes at a time when most companies including Amazon and Facebook's parent Meta Platforms are making deep cuts to their employee base to navigate a potential downturn in the economy.

In 2015, Hewlett-Packard split into two companies, HP Inc and Hewlett Packard Enterprise in order to compete more effectively in the changing technology market.