HP will be reducing its headcount by 4,000 to 6,000 people by the end of the 2025 financial year as the company rolls out its fiscal year 2023 Future Ready Transformation plan.
The company said, in a statement, that this transformation plan will drive significant structural cost savings through digital transformation, portfolio optimisation and operational efficiency.
The company estimates that these actions will result in annualised gross run rate savings of at least US$1.4 billion by the end of fiscal 2025.
HP declined to disclose any country-specific numbers but a spokesperson told Sprinter, “As part of the actions we are taking, we will be reducing the size of our workforce by 4,000 to 6,000 people over the next three years.
“These are the toughest decisions we have to make, because they impact colleagues we care deeply about. We are committed to treating people with care and respect – including financial and career services support to help them find their next opportunity.”
The announcement comes with the company releasing its fiscal 2022 full year and fourth quarter financial results. The company announced a fiscal 2022 net revenue of US$63 billion, down 0.8 per cent from the prior-year period.
As for its fourth quarter net revenue, it was reported at US$14.8 billion, down 11.2 per cent from the prior-year period.
Within its Printing business unit, net revenue was US$4.5 billion, down seven per cent year over year with a 19.9 per cent operating margin.
It said total hardware units were down three per cent with consumer units down four per cent and commercial units up by five per cent. Consumer net revenue was down seven per cent and commercial net revenue was up by one per cent. Supplies net revenue was down 10 per cent.
“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,” HP president and CEO Enrique Lores said.
“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.”
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