HP Inc. layoffs will impact 4,000 to 6,000 employees or roughly 10% of staff, the PC and printer maker disclosed as part of its Q4 2022 earnings results.
The layoffs -- spun as a "Future Ready Transformation" -- will involve headcount reductions that are expected to be completed by the end of fiscal 2025. The HP job cuts will deliver an annual run rate savings of at least $1.4 billion by the end of 2025. Still, the layoffs will also trigger $1.0 billion in restructuring charges spread across fiscal 2023, 2024 and 2o25, the company said.
Related: See all technology industry layoffs listed here.
HP Financial Performance: PC and Printer Sales Stats
For its Q4 of fiscal 2022, HP said:
- PC net revenue was $10.3 billion, down 13% compared to the corresponding quarter last year.
- Printing net revenue was $4.5 billion, down 7% compared to the Q4 of fiscal 2021.
Still, the financial results generally beat Wall Street's expectations, according to SeekingAlpha.
In a prepared statement about HP's earnings and strategic direction, HP President and CEO Enrique Lores said:
“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half. 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.”
