Earnings Results: HP plans to cut up to 10% of workforce as earnings forecast comes up short

by | Nov 23, 2022 | Stock Market

HP Inc. executives announced plans to cut up to 10% of their workforce in the coming years while issuing weaker-than-expected earnings guidance Tuesday, with the computer maker’s chief executive citing “a volatile macro environment and softening demand in the second half, with a slowdown on the commercial side.” “Companies are delaying their refresh [sales] cycle,” HP 
CEO Enrique Lores told MarketWatch in an interview ahead of the public release of fiscal fourth-quarter results Tuesday. 

Lores said the company is launching a three-year workforce reduction plan meant to shed 4,000 to 6,000 jobs, with more than half of the roughly $1 billion in restructuring costs expected to be realized in the new fiscal year. HP employed 51,000 workers at this time last year, when the fiscal year began; a previous workforce reduction plan announced in September 2019 sought to cut 7,000 to 9,000 employees through this fiscal year, and the current plan has a similar long-term aim. “The cuts are taking place over three years, not in the next few months,” Lores said. HP shares fell about 3% in after-hours trading immediately following the release of the results before rallying and inching up 2%. The stock closed Tuesday with a 0.7% increase at $29.36. HP is caught up in the most severe draw …

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