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HP to cut up to 6,000 jobs from its global workforce

Posting ‘solid’ fiscal 2022 net revenue of $US63.0 billion - down 0.8% - print giant HP revealed plans to reduce its global headcount by 4,000-6,000 by the end of fiscal 2025 under a new ‘Future Ready Transformation' plan. There's no indication yet whether the plan will affect HP staff numbers in Australia and New Zealand.

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   "Softening demand":
 HP CEO Enrique Lores

“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half,” said Enrique Lores, HP president and CEO. “In Q4 we delivered on our non-GAAP EPS target, while also completing our three-year value creation plan and exceeding our key metrics.

“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.”

Fiscal year 2023 Future Ready Transformation, jobs culled

HP Inc. has announced a fiscal year 2023 Future Ready Transformation plan, “driving significant structural cost savings through digital transformation, portfolio optimization and operational efficiency,” it said. 

“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. The company estimates that it will incur approximately $1.0 billion in labor and non-labor costs related to restructuring and other charges, with approximately $0.6 billion in fiscal 2023, and the rest split approximately equally between fiscal 2024 and 2025.

"The company expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2025.”

In October 2019, HP announced plans to reduce its global headcount of 55,000 by about 7,000-9,000 by 2022.  

HP Inc. and its subsidiaries reported fiscal 2022 net revenue of $63.0 billion, down 0.8% from the prior-year period. Fourth quarter net revenue was $14.8 billion, down 11.2% (down 8.0% in constant currency) from the prior-year period.

Fiscal 2022 fourth quarter segment results

Personal Systems net revenue was $10.3 billion, down 13% year over year (down 9% in constant currency) with a 4.5% operating margin. Consumer net revenue decreased 25% and Commercial net revenue decreased 6%. Total units were down 21% with Notebooks units down 26% and Desktops units down 3%.

Printing net revenue was $4.5 billion, down 7% year over year (down 6% in constant currency) with a 19.9% operating margin. Total hardware units were down 3% with Consumer units down 4% but Commercial units up by 5%. Consumer net revenue was down 7% and Commercial net revenue was up 1%. Supplies net revenue was down 10% (down 10% in constant currency).

http://www.hp.com