PC and printer manufacturer HP Inc. is the latest tech company to announce layoff plans, reporting Tuesday it will eliminate between 4,000 and 6,000 jobs over the next three years. That represents up to 10% of HP’s 61,000 worldwide employees.
The Silicon Valley company said sales in its computing business were down 13% last quarter and its printing revenue was down 7%. And HP said it doesn’t expect better results anytime soon.
“We think that at this point it’s prudent not to assume that the market will turn during 2023,” CEO Enrique Lores told The Wall Street Journal.
HP has a research and manufacturing hub in Corvallis and an engineering and administrative office in Vancouver. The company won’t say how many work at either site.
The company is preparing to build a new research campus in Vancouver, which it plans to open in 2026. And HP said last month it will return some manufacturing jobs to Corvallis from overseas if it can win a share of the federal CHIPS Act subsidies the Biden administration plans to begin awarding early next year.
HP declined to say if the cutbacks announced Tuesday will affect those plans. The company began furloughing contract workers in its Corvallis printer supply factory last summer, citing low demand.
While the broader labor market remains robust, the tech industry is cutting jobs as demand falls amid a cooling global economy and it becomes clear that changes in consumer behavior that accompanied the pandemic won’t persist.
Amazon, Facebook, Twitter and many other large tech companies have all laid off workers in recent weeks. Intel, Oregon’s largest corporate employer, is cutting an unspecified number of jobs in response to a severe decline in sales.
Update: This article has updated with HP’s current global headcount.
— Mike Rogoway | mrogoway@oregonian.com | 503-294-7699 | Twitter: @rogoway |
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