Components & Peripherals News
HP Furloughs Dozens At Oregon Factory As Print Demand Falls: Report
The Palo Alto, Calif.-based IT giant posted a solid second quarter, but print revenue was down. Company says action needed to ‘position the business for long-term sustainable growth.’
HP Inc. has furloughed dozens of contract employees at its printer supply factory in Corvallis, Oregon for the last two weeks of July with another furlough planned for September, according to The Oregonian.
The newspaper quoted sources with direct knowledge of the tech firm’s plans. Furlough notices were sent to workers for July 18 through July 29. The next two-week furlough begins September 12 and ends September 23, according to the newspaper.
Palo Alto, Calif.-based HP did not provide specifics on the furloughs, but in a statement to CRN said, “Our consistent and rigorous financial discipline is what allows us to maximize investments in our strategic priorities and position the business for long-term sustainable growth. As part of this, we regularly evaluate and optimize contractor spending to support business objectives.”
Last month, HP reported a 7 percent drop in printer revenue for the second quarter compared to the previous year and supplies sales were also down 6 percent year-over-year. The Corvallis campus houses both research and manufacturing. HP employs more than 51,000 people globally.
In May, HP CEO Enrique Lores told CRN the company was feeling impacts from the COVID-19 lockdowns plaguing China’s major tech manufacturing regions in and around Shanghai. “We’ve already had some impacts this quarter,” Lores said during a press briefing.