HP reports latest financials, looks to cut up to 6,000 jobs

November 23, 2022

HP Inc. reported its fiscal 2022 full year and fourth quarter results with an announcement of its “Future Ready Transformation” plans.

HP Inc. and its subsidiaries (HP) announced fiscal 2022 net revenue of $63.0 billion (€61 billion), down 0.8% year-over-year. Fourth quarter net revenue was $14.8 billion (€14.3 billion), down 11.2% from the prior-year period.

“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,” said Enrique Lores, HP President and CEO. “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.”

Personal Systems net revenue was $10.3 billion (€10 billion), down 13% year-over-year with a 4.5% operating margin. Consumer net revenue decreased 25% and Commercial net revenue decreased 6%. Total units were down 21% with Notebooks units down 26% and Desktops units down 3%.

Printing net revenue was $4.5 billion (€4.4 billion), down 7% year-over-year with a 19.9% operating margin. Total hardware units were down 3% with Consumer units down 4% and Commercial units up 5%. Consumer net revenue was down 7% and Commercial net revenue was up 1%. Supplies net revenue was down 10%.

HP Inc. also announced a fiscal year 2023 Future Ready Transformation plan, “driving 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 $1.4 billion (€1.3 billion) by the end of fiscal 2025.

The company estimates that it will incur approximately $1.0 billion (€970 million) in labour and non-labour costs related to restructuring and other charges, with approximately $0.6 billion (€582 million) in fiscal 2023, and the rest split approximately equally between fiscal 2024 and 2025.

The company expects to reduce gross global headcount by approximately 4,000-6,000 employees.

These actions are expected to be completed by the end of fiscal 2025.