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HP plans up to 6,000 job cuts for $1b in savings
HP Inc. expects profit for the current year to miss analyst estimates and plans to cut 4,000 to 6,000 jobs by fiscal 2028, citing expanded use of AI tools across its operations.
The company said these job cuts, which will affect about 10% of its workforce, are aimed at achieving US$1 billion in annual savings by 2028.
HP will incur around US$650 million in restructuring charges, with US$250 million expected in fiscal 2026, and had about 58,000 employees as of October 2024.
Earnings per share for the year, excluding certain items, are projected at US$2.90 to US$3.20, below the US$3.3 average analyst estimate.
HP also forecasts adjusted earnings per share of 73 to 81 cents for the quarter ending January, compared to the 78-cent analyst expectation.
Shares fell 4% in extended trading following the announcement.
Sales in Q4 rose 4.2% to US$14.6 billion, with PC revenue up 8%, but printer sales down 4%.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
HP’s restructuring raises questions about timing and impact
- HP plans 4,000 to 6,000 job cuts, close to 10% of its 58,000 employees, with a goal of $1 billion in yearly savings by fiscal 2028 1.
- It set aside $650 million for new restructuring charges 1 while Printing revenue slipped 4% in Q4 2. The long runway before results appear clouds the near-term picture.
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