Latest news with #KarenParkhill
Newsweek
15 hours ago
- Business
- Newsweek
Hundreds of Layoffs Hit Silicon Valley
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Silicon Valley is facing another wave of job losses, as several leading tech companies have announced hundreds of layoffs across the Bay Area, according to recent state filings. The companies involved include LinkedIn, Chegg, and Hewlett Packard Enterprise (HP), which collectively informed the California Employment Development Department (EDD) in May of their plans to eliminate over 400 positions, according to Worker Adjustment and Retraining Notification (WARN) notices. Newsweek reached out to the companies announcing layoffs via email for comment. Why It Matters The latest reductions add to a growing tally of technology job cuts in California this year, signaling persistent workforce instability in a region long seen as the nation's technology powerhouse. The surge in layoffs comes as Silicon Valley's tech sector grapples with shifting business strategies and an accelerating push toward artificial intelligence. What To Know According to official WARN notices, LinkedIn has eliminated over 280 roles in May, including 159 employees from its Mountain View office alone. Educational tech firm Chegg laid off 88 employees in Santa Clara on the same date, May 15. Two weeks earlier, HP implemented 61 job cuts in San Jose. All three companies described the layoffs as permanent in their WARN notices to the California EDD. Reasons were not given alongside the notices, though the companies have in the past defended the need for restructuring to cut costs and improve efficiencies in an increasingly uncertain macroeconomic climate. A LinkedIn office in San Francisco, California, as seen on July 26, 2023. A LinkedIn office in San Francisco, California, as seen on July 26, releasing its first-quarter earnings in May, which revealed a 30 percent year-over-year drop in revenue, Chegg announced that it would cut its headcount by around 22 percent as the company takes "proactive measures to align costs with our business outlook." In its announcement, Chegg also noted the increased adoption of AI by students over traditional education tools. "Language model companies are turning to academia for validation, with OpenAI recently giving college students free access to Chat GPT Plus, and Anthropic launching a free education offering," the company said. Chegg added that it plans to close its physical offices in the U.S. and Canada by the end of 2025. In a filing with the Securities and Exchange Commission (SEC) earlier this week, HP stated that it expects to implement "gross workforce reductions of approximately 1,000 to 2,000 employees" this year, in addition to the 7,000 cuts outlined in its Fiscal 2023 Plan. CFO Karen Parkhill said in a February earnings call that the "incremental structural savings" HP was pursuing would "continue to be a key lever to help offset macro and geopolitical uncertainties while also continuing to fuel investment in our key growth areas and AI innovation." 2025 Layoff Trends and Context The Bay Area layoffs extend beyond these three companies. Technology firms in California announced 17,874 layoffs in the first quarter of the year, according to the Los Angeles Times, including staff cuts at Meta and Google. In May, Microsoft announced nearly 100 layoffs in California, according to WARN notices. This comes amid the company's broader plan to trim its workforce by approximately 3 percent, affecting roughly 6,000 employees. The layoffs announced in May are expected to take effect in July. What People Are Saying A spokesperson for Microsoft, in a statement given to CNBC: "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace." Clair Brown, Professor of Economics at UC Berkeley, told Newsweek that California's labor market for recent college graduates was weakening "for a variety of reasons," including the effects of reduced imports from Asia, as well as "the increasing use of AI by employers especially in coding, in marketing, in draft analysis of data, and even routine tasks such as customer inquiries." "The chaos presented by changing economic policies with tariffs is also causing employers to replace job vacancies slowly or not at all," she said, adding: "Over time, I worry that the labor market for early stage professional workers, such as my UCB students, will face declining jobs opportunities as the use of AI becomes widespread." Chegg CEO and President Nathan Schultz said on May 12: "We believe the trends impacting our business will worsen before they get better. We are taking steps to further align costs with our outlook, including an additional restructuring of our business." What Happens Next Despite this trend, the California labor market remains steady. According to the state's latest EDD report, California added 17,700 jobs in April, following 6,800 job losses in March.
Yahoo
2 days ago
- Business
- Yahoo
HP Plunges After Cutting Profit Outlook on Tariffs, Economy
(Bloomberg) -- HP Inc. dropped about 10% in premarket trading on Thursday after the company's profit outlook fell short of estimates and it cut the annual earnings forecast, pointing toward a weaker economy and continuing costs from US tariffs on goods from China. NYC Congestion Toll Brings In $216 Million in First Four Months NY Wins Order Against US Funding Freeze in Congestion Fight NY Congestion Pricing Is Likely to Stay Until Year End During Court Case Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania Earnings, excluding some items, will be 68 cents to 80 cents a share in the period ending in July, the maker of computers and printers said Wednesday in a statement. Analysts, on average, estimated 91 cents. Fiscal second-quarter profit was 71 cents a share, compared with the average estimate of 81 cents. Profit was dented by 12 cents from the impact related to tariffs and HP's spending to move manufacturing out of China, said Chief Financial Officer Karen Parkhill. Demand for computers is being hurt by rising economic uncertainly tied to tariffs, the impact of which was greater than the company expected when it gave its earlier forecast, Chief Executive Officer Enrique Lores said in an interview. The company is boosting production in Vietnam, Thailand, India, Mexico and the US. By the end of June, almost all products sold in North America will be made outside of China, he said. Still, the PC market will grow at a more moderate pace because of the slowing economy. HP reduced its annual adjusted profit outlook to $3 to $3.30 a share from a previous forecast of $3.45 to $3.75 a share. 'Clearly the economic environment is very different now from what it was in February and consumer and some business confidence has clearly changed,' Lores said. Apart from a weaker economy, industrywide price increases are hurting demand, he said. 'We thought it was important to be prudent.' The stock closed at $27.20 in New York and has declined 16% this year. In the quarter ended April 30, revenue increased 3.3% to $13.2 billion, slightly above the average estimate of $13.1 billion. A recovery in the long-ailing personal computer market has started to materialize in recent quarters, but tariffs are derailing progress. Shipments of PCs ticked up 4.9% in the March quarter, according to IDC, an industry research firm. Some of that may be due to customers making purchases ahead of President Donald Trump's tariffs announced on April 2, the market research firm said. Revenue in HP's personal system business, which includes PCs, increased 7% to $9 billion. Analysts, on average, estimated $8.8 billion. Lores said HP saw a 'fairly small' impact from customers moving up purchases. 'We expect to fully mitigate the increased trade-related costs' by the fourth quarter, he said. (Updates with premarket shares) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
HP Plunges After Cutting Profit Outlook on Tariffs, Economy
(Bloomberg) -- HP Inc. dropped about 10% in premarket trading on Thursday after the company's profit outlook fell short of estimates and it cut the annual earnings forecast, pointing toward a weaker economy and continuing costs from US tariffs on goods from China. NYC Congestion Toll Brings In $216 Million in First Four Months NY Wins Order Against US Funding Freeze in Congestion Fight NY Congestion Pricing Is Likely to Stay Until Year End During Court Case Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania Earnings, excluding some items, will be 68 cents to 80 cents a share in the period ending in July, the maker of computers and printers said Wednesday in a statement. Analysts, on average, estimated 91 cents. Fiscal second-quarter profit was 71 cents a share, compared with the average estimate of 81 cents. Profit was dented by 12 cents from the impact related to tariffs and HP's spending to move manufacturing out of China, said Chief Financial Officer Karen Parkhill. Demand for computers is being hurt by rising economic uncertainly tied to tariffs, the impact of which was greater than the company expected when it gave its earlier forecast, Chief Executive Officer Enrique Lores said in an interview. The company is boosting production in Vietnam, Thailand, India, Mexico and the US. By the end of June, almost all products sold in North America will be made outside of China, he said. Still, the PC market will grow at a more moderate pace because of the slowing economy. HP reduced its annual adjusted profit outlook to $3 to $3.30 a share from a previous forecast of $3.45 to $3.75 a share. 'Clearly the economic environment is very different now from what it was in February and consumer and some business confidence has clearly changed,' Lores said. Apart from a weaker economy, industrywide price increases are hurting demand, he said. 'We thought it was important to be prudent.' The stock closed at $27.20 in New York and has declined 16% this year. In the quarter ended April 30, revenue increased 3.3% to $13.2 billion, slightly above the average estimate of $13.1 billion. A recovery in the long-ailing personal computer market has started to materialize in recent quarters, but tariffs are derailing progress. Shipments of PCs ticked up 4.9% in the March quarter, according to IDC, an industry research firm. Some of that may be due to customers making purchases ahead of President Donald Trump's tariffs announced on April 2, the market research firm said. Revenue in HP's personal system business, which includes PCs, increased 7% to $9 billion. Analysts, on average, estimated $8.8 billion. Lores said HP saw a 'fairly small' impact from customers moving up purchases. 'We expect to fully mitigate the increased trade-related costs' by the fourth quarter, he said. (Updates with premarket shares) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
HP cuts annual profit forecast as tariffs weigh on demand, shares fall
May 28 (Reuters) - HP Inc (HPQ.N), opens new tab cut its annual profit forecast on Wednesday as it expects a moderation in PC market growth at a time when the global economic environment remains volatile, sending its shares down 14% in extended trading. The uncertainty surrounding U.S. tariffs and associated inflationary pressures will negatively impact demand for personal computers in the following quarters in 2025, research firm IDC said last month. HP is seeing the biggest cost impact in its Personal Systems segment, CFO Karen Parkhill said. "The tariff-related costs are due to both the actual cost of the tariffs, as well as the increased investment that we are making to work to offset them." The company expects to offset the costs by the fourth quarter. HP now expects fiscal 2025 adjusted profit between $3.00 and $3.30 per share, down from its prior forecast of $3.45 to $3.75 per share. Analysts had expected a full-year profit of $3.49 per share, according to data compiled by LSEG. The company's second quarter was "impacted by higher-than-expected tariffs that we were not able to fully mitigate," HP CEO Enrique Lores said. "We have recently increased production in Vietnam, Thailand, India, Mexico and the U.S., and by the end of June, we expect nearly all our products sold in North America will be built outside of China," Lores added. For the second quarter ended April 30, HP reported revenue of $13.22 billion, compared with analysts' average estimate of $13.14 billion. On an adjusted basis, the company earned 71 cents per share, missing estimates of 80 cents. Sales at HP's Personal Systems segment — home to its desktop and notebook PCs — rose 7% from a year earlier, while sales at its Printing unit fell 4% in the quarter. The PC maker forecast third-quarter adjusted profit per share between 68 cents and 80 cents, compared with estimates of 90 cents.
Bloomberg
2 days ago
- Business
- Bloomberg
HP Profit Outlook Falls Short on Tariffs Costs, Economy
HP Inc. gave a profit outlook for the current quarter that fell short of expectations, and cut its annual earnings forecast, pointing toward a weaker economy and continuing costs from US tariffs on goods from China. The shares fell about 15% in extended trading. Earnings, excluding some items, will be 68 cents to 80 cents a share in the period ending in July, the maker of computers and printers said Wednesday in a statement. Analysts, on average, estimated 91 cents. Fiscal second-quarter profit was 71 cents a share, compared with the average estimate of 81 cents. Profit was dented by 12 cents from the impact related to tariffs and HP's spending to move manufacturing out of China, said Chief Financial Officer Karen Parkhill.
