This post was originally published on this site
https://i-invdn-com.investing.com/trkd-images/LYNXMPEIAL11F_L.jpg
The PC maker estimates it will incur about $1.0 billion in labor and non-labor costs related to restructuring and other charges, with nearly $0.6 billion in fiscal 2023 and the rest split between the following two years.
The restructuring comes at a time when most companies including Amazon.com Inc (NASDAQ:AMZN), Facebook (NASDAQ:META)’s parent Meta Platforms Inc and Cisco Systems Inc (NASDAQ:CSCO) are making deep cuts to their employee base to navigate a potential downturn in the economy.
The company forecast current-quarter profit between 70 cents and 80 cents. Analysts on average expect 86 cents, according to Refinitiv data.
Shares of the company were down 1.2% in extended trading.
PC sales have shrunk from the heights hit during the pandemic as households and businesses tighten spending in the face of decades-high inflation, putting pressure on companies such as HP (NYSE:HPQ) and Dell Technologies (NYSE:DELL) Inc.
Earlier on Monday, Dell reported a 6% fall in third-quarter revenue. The company’s Chief financial officer Tom Sweet said the ongoing macroeconomic factors including inflation and rising interest rates would weigh on customers next year.
HP also reported a 11% fall in fourth-quarter revenue to $14.8 billion.
