HP Taiwan China Confirms Employee Layoff

HP Taiwan China Confirms Employee Layoff

HP Taiwan, China has announced plans to lay off two batches of employees in October, including staff from the development department and vice-president-level management. The layoffs are expected to affect approximately 20 to 30 employees.

Since 2022, HP has been implementing a global workforce reduction strategy aimed at decreasing staff by 10% by fiscal year 2025, impacting between 4,000 to 6,000 employees worldwide. While layoffs have predominantly targeted the sales division, cuts in development and management roles are uncommon. Because the number of jobs eliminated does not qualify as “mass deployment,” the local labor bureau will only remind HP to comply with local labor laws and provide future guidance.

According to reports from internal sources, HP has reduced the local team’s involvement in purchasing decisions, transferring these responsibilities to Singapore and establishing several new positions. The newly appointed global purchasing director, Jonathan Jennings, will oversee purchasing decisions and report to Ernest Nicolas, chief supply chain officer of HP. Since 2022, Nicolas has been actively adjusting corporate supply chain strategies in response to complex geopolitical dynamics.

Coincidentally, Nikkei Asia previously reported that HP is considering relocating its production site in China and establishing a backup design hub in Singapore to enhance global flexibility and adaptability. The shift of purchasing functions from Taiwan, China to Singapore is seen as a direct response to geopolitical risks, allowing for reduced reliance on any single country or region. The report also noted that Thailand may be considered as the primary site for production, although this is unrelated to the current layoffs in Taiwan, China.

According to HP’s third-quarter financial report, the company recorded a net profit of US$640 million, a 16.4% decline year-on-year. The layoffs in Taiwan, China are viewed as efforts to mitigate geopolitical risks and optimize the personnel structure.

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