HP Revenues Down 11 Percent, Layoffs Loom

HP announced its quarterly and annual earnings today, but despite slightly beating expectations, the PC maker says it will lay off up to 6,000 employees.

“We had a solid end to our fiscal year despite navigating a volatile macro-environment and softening demand in the second half,” HP president and CEO Enrique Lores said. “In Q4 we delivered on our non-[earnings] target, while also completing our three-year value creation plan and exceeding our key metrics. Looking forward, the new 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.”

Windows Intelligence In Your Inbox

Sign up for our new free newsletter to get three time-saving tips each Friday — and get free copies of Paul Thurrott's Windows 11 and Windows 10 Field Guides (normally $9.99) as a special welcome gift!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

HP reported revenues of $14.8 billion in the quarter ending October 31, a decline of 11.2 percent year-over-year (YOY). The firm reported revenues of $63 billion in its fiscal year 2022, a decline of less than 1 percent YOY.

HP, the world’s second-biggest maker of PCs, said that PC sales declined 21 percent in the quarter, with portable sales down 26 percent and desktop PC sales down 3 percent. Revenue from consumer PC sales fell 25 percent while commercial PC revenues fell 6 percent. Its Personal Systems business unit reported revenues of $10.3 billion in the quarter, down 13 percent YOY.

HP’s other business, Printing, delivered $4.5 billion in revenues, down 7 percent, with total hardware sales down 3 percent.

Of course, the big news was that HP expects to lay off 4,000 to 6,000 employees during the current and next two fiscal years, or up to 12 percent of its workforce. “HP’s plan [will] drive significant structural cost savings through digital transformation, portfolio optimization, and operational efficiency,” it noted. “The company estimates that these actions will result in annualized gross run rate savings of at least $1.4 billion by the end of fiscal 2025.”

HP doesn’t expect the PC industry to bounce back anytime soon.

“We think that at this point it’s prudent not to assume that the market will turn during [HP’s fiscal] 2023,” Mr. Lores said in an interview.

Tagged with

Share post

Please check our Community Guidelines before commenting

Windows Intelligence In Your Inbox

Sign up for our new free newsletter to get three time-saving tips each Friday

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Thurrott © 2024 Thurrott LLC