HP Decides To Let Go Of 4K – 6K Employees After 11% Revenue Decline In Q4; Likely To Save $1.4B In Costs By FY25 – HP (NYSE:HPQ)

  • HP Inc HPQ announced an FY23 Future Ready Transformation plan, driving significant structural cost savings through digital transformation, portfolio optimization, and operational efficiency.
  • It estimates that these actions will result in annualized gross run rate savings of at least $1.4 billion by the end of FY25.
  • HP estimates that it will incur $1.0 billion in labor and non-labor costs related to restructuring and other charges, with $0.6 billion in FY23 and the rest split equally between FY24 and FY25.
  • Also Read: Amazon Confirms Downsizing Of ~10K Employees, Extends Severance Packages
  • It looks to reduce gross global headcount by 4,000-6,000 employees.
  • These actions will likely be over by the end of FY25.
  • HP reported fourth-quarter net revenue of $14.8 billion, down 11.2% year-on-year, beating the consensus of $14.68 billion.
  • Non-GAAP EPS of $0.85 beat the consensus of $0.84.
  • HP produced $1.9 billion in cash from operating activities and held $3.15 billion in cash and equivalents.
  • HP boosted the quarterly dividend by 5% Y/Y to $0.2625 per share.
  • HP sees Q1 FY23 non-GAAP EPS of $0.70 – $0.80, below the consensus of $0.86.
  • HP expects FY23 non-GAAP EPS of $3.20 – $3.60, below the consensus of $3.62.
  • Price Action: HPQ shares closed higher by 0.7% at $29.37 on Tuesday.

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