Shulou(Shulou.com)11/24 Report--

Beijing, Nov. 23 (Xinhua) PC giant Hewlett-Packard will cut as many as 6000 jobs in the next three years as falling demand for personal computers erodes its profits.

Hewlett-Packard, which makes most of its revenue from computer sales, has been grappling with continued sluggish demand for personal computers. Enrique Lourdes, CEO of Hewlett-Packard, said the market downturn began with low-end consumer goods, but the phenomenon has spread as companies cut jobs and restrict technology investment. Gartner, a leading research firm, reported that global PC shipments fell by nearly 20% in the third quarter, the biggest drop since the company began tracking the data in the mid-1990s.

To manage costs, hp will cut up to 10 per cent of its 61000 global workforce over the next three years and reduce its presence in the real estate market, Mr Lourdes said. HP's move will incur an estimated $1 billion in restructuring costs, about 60 per cent of which will occur in fiscal year 2023, which begins this month. HP said in a statement that the program would save $1.4 billion a year by the end of fiscal year 2025.

Hewlett-Packard said in a statement on Tuesday that earnings per share excluding some items would be between $3.20 and $3.60 a share in the fiscal year ending October 2023, below the average analyst estimate of $3.61. free cash flow is about $3.25 billion, also lower than expected. Lourdes said in an interview that the forecast assumes a 10 per cent decline in computer sales this fiscal year. "We expect the market environment to be challenging." He said.

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