Massive Layoffs Shock Tech World: This Global Giant to Sack 24,000 Employees and Halt Major Projects
In a move that has sent shockwaves across the global tech industry, Hewlett-Packard (HP Inc.), one of the world’s oldest and most renowned technology giants, has announced a massive layoff plan affecting over 24,000 employees worldwide. Contrary to circulating rumors, the axe is not falling on Indian tech titans like Ratan Tata’s TCS or Narayana Murthy’s Infosys, but on the Palo Alto-based multinational itself, which is now undergoing a dramatic restructuring.
The Shocking Announcement: HP’s 24,000-Job Slash
HP’s restructuring plan is being driven by shrinking PC sales, evolving business models, and intensified competition in cloud and AI segments. The company revealed in its latest earnings call that it aims to cut costs by up to $1.4 billion over the next three years, and the bulk of that will come through staff reductions.
According to internal sources and official documentation, the layoff will impact departments across:
- Hardware manufacturing
- IT support and services
- Sales and marketing teams
- R&D teams involved in older product lines
The layoffs are expected to roll out in phases, with the first wave already beginning in North America, followed by Europe and Asia-Pacific.
Major Projects Halted
Alongside the layoffs, HP is putting the brakes on multiple underperforming and high-cost projects, especially those in the consumer printing division and legacy enterprise software systems. Internal memos suggest the company is shifting its strategic focus away from traditional business lines and toward:
- AI-enabled enterprise solutions
- Cloud computing services
- Subscription-based software models
This pivot, while in line with global tech trends, comes at a painful cost for thousands of loyal employees.
Why HP is Downsizing
HP has been struggling to maintain its foothold in an increasingly competitive market. In Q2 2025, the company reported:
- A 14% drop in PC sales
- Declining demand for personal printers
- Lower-than-expected enterprise hardware contracts
- Rising costs due to inflation and global supply chain issues
Analysts believe that HP’s traditional revenue models are now outdated. As tech giants like Microsoft, Apple, and Amazon dominate with software ecosystems, AI tools, and cloud platforms, HP finds itself at a crossroads.
Strategic Refocus: AI and Cloud Are the Future
CEO Enrique Lores emphasized that the layoffs, though difficult, are necessary to “reposition HP as a leaner, future-ready enterprise.” The company has announced a $600 million investment into AI research and cloud infrastructure, aiming to compete more aggressively in those domains.
HP will also continue developing its HP Poly collaboration tools, acquired through the Poly deal, to push into the remote work and hybrid office segment.
Employee Reactions and Industry Sentiment
While HP claims to offer severance packages and outplacement support, employees have taken to social media platforms like LinkedIn and X (formerly Twitter) to express shock, anger, and anxiety over the abrupt decision. Many expressed concern over job security in the tech industry as a whole, especially after recent layoffs at other firms like Meta, Amazon, and Salesforce.
Tech analysts see this as part of a broader correction in the IT sector, where companies that overhired during the pandemic-fueled boom are now facing harsh market realities.
🇮🇳 What About India?
India, home to a significant chunk of HP’s R&D and customer service workforce, will not be spared. Reports suggest that nearly 4,000 positions in India alone are likely to be dissolved, especially in Bengaluru, Hyderabad, and Gurugram.
However, Indian IT giants like TCS and Infosys remain unaffected, continuing to show stable growth trajectories with strong domestic and overseas contracts.
The Bigger Picture
This development serves as a stark reminder that even legacy tech firms are not immune to the pressures of innovation, automation, and changing market dynamics. As HP attempts to reinvent itself, the world watches with cautious optimism—will this transformation save the company or mark the beginning of its end?
Stay tuned for updates on job markets, industry reshuffles, and how global tech shifts are impacting Indian professionals.
