Enrique Lores, President and Chief Executive Officer of HP Inc. speaks at COMPUTEX forum in Taipei, Taiwan June 3, 2024.
Ann Wang | Reuters
PC and printer maker HP Inc. said Tuesday that it will lower its headcount by 4,000 to 6,000 people. The company also issued a lower-than-expected earnings projection for the new fiscal year.
Shares of the company fell 5% in extended trading.
Here’s how HP did versus LSEG consensus estimates:
- EPS: 93 cents adjusted vs. 92 cents expected
- Revenue: $14.64 billion vs. $14.48 billion expected
For the first quarter of HP’s fiscal 2026, the company called for 73 cents to 81 cents in adjusted net earnings per share, while the LSEG consensus was 79 cents. For all of fiscal 2026, HP sees $2.90 to $3.20 in adjusted per share, below the LSEG consensus of $3.33.
“HP’s outlook reflects the added cost driven by the current U.S. trade-related regulations in place, and associated mitigations,” the company said in the statement.
HP said it expects to complete the headcount reduction by the end of fiscal 2028. The company said the restructuring will result in savings of at least $1 billion in annualized gross run rate by the end of fiscal 2028. HP said it expects to incur about $650 million in charges, of which $250 million will happen in fiscal 2026.
The company announced a similarly sized round of layoffs in 2022. Several other technology companies have announced layoffs in recent months as U.S. consumers face higher prices and interest rates.
As of Tuesday’s close, HP shares were down 25% for the year, while the S&P 500 index has gained 15% in the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
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