HP plans to initiate layoffs that will impact as many as 6,000 employees globally over the next three years.

HP made the announcement Tuesday while reporting its fiscal year 2022 and fourth quarter earnings. For its fiscal fourth quarter, HP reported $14.8 billion in revenue, down 11% from the year-ago quarter. However, it was slightly above Wall Street’s expectation of $14.7 billion. Revenue was down 8% when adjusted for currency.

HP announced a fiscal year 2023 Future Ready Transformation plan. It aims to drive significant structural cost savings through digital transformation, portfolio optimization and operational efficiency. The company estimates that these actions will result in annualized gross run rate savings of at least $1.4 billion by the end of fiscal 2025.

HP estimates that it will incur about $1 billion in labor and non-labor costs related to restructuring and other charges, with about $600 million in fiscal 2023, and the rest split about equally between fiscal 2024 and 2025.

The company expects to reduce gross global headcount by about 4,000-6,000 employees. Look for this to be complete by the end of its 2025 fiscal year, which ends Oct. 31, 2025.

‘Solid End’ to Fiscal 2022

Enrique Lores is HP‘s president and CEO.

HP’s Enrique Lores

“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half,” he said. “Looking forward, the new Future Ready strategy we introduced this quarter will enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future.”

HP has about 60,000 employees, according to CNBC. In 2019, HP announced it planned to cut between 7,000 and 9,000 workers.

During its fourth quarter, the company’s PC business had net revenue totaling $10.3 billion, down 13% year over year. Printing net revenue was $4.5 billion, down 7% year over year.

HP expects lagging demand for PCs will extend into 2023.