Week in review: More job cuts hit tech industry while TikTok recruiting forges ahead

Federal Reserve Bank of San Francisco president Mary Daly speaking to a gathering of local business executives at the Orange County Business Council offices in Irvine on Nov. 21, 2022. (Photo by SCNG's Jonathan Lansner

HP in Palo Alto is eliminating as many as 6,000 jobs over the next three years amid declining demand for personal computers.

The company, which makes most of its money by selling computers, has been navigating a sustained downturn in PC demand.

It began with lower-end consumer products but has spread as companies reduce their workforces and curb technology investment, Chief Executive Officer Enrique Lores said.

Industry analyst Gartner Inc. said global PC shipments declined almost 20% in the third quarter — the biggest fall since it began tracking the metric in the mid-1990s. Dell Technologies in Texas, which generates 55% of its revenue from PC sales, on Monday gave a lackluster outlook for the current quarter and said some customers have “paused purchases” in the near term.

To manage costs, HP will cut as much as 10% of its 61,000-employee global workforce over the next three years and reduce its real estate footprint, Lores said. The company will incur an estimated $1 billion in restructuring charges, with about 60% in fiscal year 2023, which began this month. By the end of fiscal 2025, the plan should save as $1.4 billion a year, HP said in the statement.

Numerous tech companies have announced workforce reduction plans in recent weeks. Meta Platforms Inc. and Amazon.com Inc. each began cutting about 10,000 jobs while Twitter Inc. wiped out more than half its staff of 7,500 employees. Hard-drive maker Seagate Technology Holdings Plc. said it would cut about 3,000 jobs while Cisco Systems Inc. last week unveiled a plan to reduce an unspecified number of jobs and close offices.

TikTok shrugs off econ malaise, plans to keep hiring

While much of Silicon Valley is grappling with hiring freezes and job cuts, at least one social media company is still planning to keep hiring: TikTok.

The short-form video app remains committed to its …read more

Source:: Los Angeles Daily News

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