WASHINGTON (dpa-AFX) - HP Inc. (HPQ) announced that it expects to reduce its global workforce by about 4,000 to 6,000 employees as part of a newly launched company-wide initiative, the 'Fiscal 2026 Plan.' The plan is designed to enhance customer satisfaction, accelerate product innovation, and improve productivity through artificial intelligence adoption and enablement.
HP estimates the actions will deliver gross run rate savings of about $1 billion by the end of fiscal 2028.
To implement the plan, the company anticipates incurring approximately $650 million in labor and non-labor restructuring charges, with about $250 million expected in fiscal 2026. All actions are scheduled to be completed by the end of fiscal 2028.
While announcing the fourth quarter results, HP said it expects net earnings per share to be in the range of $0.58 to $0.66 and non-GAAP net earnings per share to be in the range of $0.73 to $0.81 for the fiscal 2026 first quarter. Analysts expect the company to report earnings of $0.78 per share for the first quarter. Analysts' estimates typically exclude special items.
For fiscal 2026, the company projects net earnings per share to be in the range of $2.47 to $2.77 and non-GAAP net earnings per share to be in the range of $2.90 to $3.20. Analysts expect the company to report annual earnings of $3.33 per share.
HP has declared a quarterly cash dividend of $0.30 per share on the company's common stock, payable on January 2, 2026 to stockholders of record as of the close of business on December 11, 2025.
HPQ closed the regular trading session at $24.32, down $0.06 or 0.25%. In overnight trading at 9:22 PM EST, the stock fell further to $23.25, representing a decline of $1.07 or 4.40%.
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