Semiconductor crisis, energy crisis, Corona crisis – for many tech companies, the last few months have been anything but easy. And there is no improvement in sight for the time being. As a result, both small and large companies are having to pull the ripcord and are deciding to make extensive job cuts in order to keep the company afloat. The two well-known companies Hewlett Packard (HP) and Cisco are also in on the action. They want to part with thousands of employees.
Poor quarterly numbers at HP prompt job cuts
The economic numbers HP released for the latest quarter may not have been just a horror for investors in the big-name tech company. Indeed, these fell by a whopping eleven percent compared to the fourth quarter of 2021. The company’s management is also shocked and vows to improve. Unfortunately, better quarterly figures are not supposed to result from a different company strategy. Rather, a large-scale restructuring is planned in the near future. The focus is not on higher profits. Instead, expenses are to be reduced through job cuts. Unfortunately, this trend can be observed more and more in the tech scene.
Probably the most famous example at present is Twitter. Since the takeover of the short message service by Elon Musk, job cuts have been the order of the day there on a large scale. According to HP, there is a gigantic savings potential in the restructuring. The slimmed-down workforce is expected to save $1.4 billion a year over three years. The fact that the company, which is known primarily for office technology, is allowing three years for the first comprehensive savings makes it clear that it is hoping that its employees will be accommodating. Motivations for a voluntary departure from the company are to be aroused by attractive severance payments.
- Also interesting: Amazon Devices: 10,000 layoffs at tech giant
There are problems at Cisco, too
In addition to HP, Cisco also has bad problems. The expert in network solutions wants to part with just under 4100 employees. Here, however, the reasons are a little different. Cisco is apparently planning to modernize its own product range. As a result, according to the company, many employees are simply no longer qualified enough. It is not yet really known exactly which changes will be made. However, it can probably be assumed that the company wants to focus more on modern cloud solutions in the future. Software developers are more in demand here than hardware experts. That’s why Cisco doesn’t just want to lay off people. At the same time, new workers are to be added to the company’s ranks.