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📂 Category: Tech Sector News,Company News,News
📌 Main takeaway:
Key takeaways
- HP announced a restructuring plan that will include laying off between 4,000 and 6,000 employees, as it aims to save about $1 billion by fiscal year 2028.
- The computer maker’s latest quarterly results beat estimates, but its earnings outlook was lower than expected.
Computer and printer maker HP ( HPQ ) stock fell on Wednesday, a day after the company announced a major cost-cutting plan that includes layoffs.
The company said it aims to cut between 4,000 and 6,000 jobs as part of its effort to save $1 billion over the next three fiscal years. For HP, which said it had about 58,000 employees in its most recent annual data, the cuts could represent up to 10% of its workforce.
Meanwhile, CEO Enrique Loris told investors during Tuesday’s earnings call that the company plans to continue investing in AI-related initiatives because it sees “a significant opportunity to integrate AI into HP to accelerate product innovation, improve customer satisfaction, and enhance productivity,” according to a transcript provided by AlphaSense.
The move makes HP the latest technology company to announce layoffs even though business looked strong last quarter, highlighting what may be a growing trend. A number of tech giants, including Amazon (AMZN) and Microsoft (MSFT), have also laid off workers in recent months, as they ramp up their efforts in artificial intelligence.
Why is this important?
The recent wave of layoffs could indicate increasing pressure on technology companies to make cuts where possible to help support their AI spending, while some may expect that the technology could reduce the need for some roles over time.
HP reported better-than-expected revenue of $14.6 billion for its fiscal fourth quarter. Adjusted earnings per share of $0.93 were also slightly above analyst expectations compiled by Visible Alpha.
However, the company’s earnings forecast of $2.90 to $3.20 in EPS for fiscal 2026 fell short of the analyst consensus.
HP shares are down about 2% in recent trading, bringing its year-to-date losses closer to 27%.
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