HP Indigo digital printing division, which has 2,500 employees in Israel, informed its employees this morning that 4-5% of the company's employees in Israel, about 100 employees, will be let go. The lays will be throughout the company's development center in Ness Ziona and ink plant in Kiryat Gat with no focus on any particular department. Several months ago HP cut 12% of its workforce worldwide.
HP said, HP continues to invest in its activity and production centers in Israel and in the business growth of the industrial printing division. These steps, which are taken in accordance with the current market challenges, will allow the company to reorganize and focus on its growth engines. HP will continue to innovate and create value for its customers while focusing on the digitization processes with the help of advanced, flexible and creative technologies. We will continue to support the values of transparency, fairness, inclusivity and respect towards the company's employees."
Last October, HP laid off 60 out of 300 employees at another HP subsidiary in Israel - Scitex, which has a development center in Netanya and a production center in Caesarea. At the same time Scitex was merged into Indigo, which is responsible for industrial digital printing for consumer product packaging. As far as is known, there will be no more layoffs at Scitex as part of the current cuts.
HP is especially sensitive to the fall in personal computer and home printer sales. Due to industrialization in the field of private computing, many households are saturated with computing equipment purchased during the Covid pandemic, with with the end of lockdowns, and the return to work in offices and the economic recession resulting in fewer private and business customers purchasing computers and printers. In the field of industrial printing in which Indigo operates, the decline in consumer product sales in marketing chains is also adversely effecting sales.
Published by Globes, Israel business news - en.globes.co.il - on February 19, 2023.
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