Large layoffs of employees at HP, but the 3D printing segment is one of those that is developing the best

Recently, we have been writing a lot about the creeping economic recession, which causes the largest companies in the world to significantly reduce employment and undergo thorough restructuring. This situation does not bypass the 3D printing sector, where there are also significant layoffs of employees, and in extreme cases even declaration of bankruptcy. HP – one of the largest players on the consumer and industrial electronics market, which has also been a leader in the additive technology sector for several years, announced a reduction in employment by 8-12%, which translates into 4,000-6,000 people who may lose their jobs by 2025 . Paradoxically, layoffs will take place mainly in sectors that have been the company’s strength so far, while 3D printing is the area where the company generates revenue increases.

The information about the layoffs appeared after the announcement of the financial results for the fourth quarter of the year – in the case of HP, which ended on October 31, 2022. The company recorded a decrease in revenues by -11.2%, reaching a revenue of USD 14.8 billion. A significant decrease was recorded especially in recent months, which had a key impact on the final result. Profits also fell – HP’s operating margin fell from 7.4% to 5.2% in the fourth quarter and from 8.4% to 7.4% in the full year.

The poor financial result is “thanks” to the decline in notebook sales (-26% year-on-year in volume terms). In the business segment it was -6%, but in the consumer market the result is much worse -25% year-on-year. The printing segment ended the fourth quarter with a decrease of -7%, while in the consumables segment the decrease was -10%.

At the same time, HP saw strong momentum in what it calls its “growth portfolio”: gaming, peripherals, employee services and solutions, consumer subscriptions, industrial graphics, and 3D printing. Sales across this portfolio rose to $11 billion, approximately $1 billion more than expected. The growth portfolio already accounts for 17% of the entire company’s turnover.

Although the MultiJet Fusion technology is only one of the components of the entire segment, it is already clear that focusing on the development of this sector turns out to be profitable for HP (more than in the case of Xerox, which is phased out of this technological line).

Source: www.crn.pl & www.centrumdruku3d.pl