Hewlett Packard has announced plans to cut between 1,000 and 2,000 jobs this year.
The move is part of its ongoing Future Ready restructuring programme, designed to save the company an additional $300 million (£234 million).
The new savings target brings the programme’s total expected savings to $1.9 billion from its launch in 2023 through to the end of fiscal year 2025.
The job cuts were revealed during HP’s first-quarter earnings report on February 27.
Speaking to investors, HP CFO Karen Parkhill called the layoffs a “key lever” to help the company manage ongoing economic and geopolitical challenges, according to CRN.
HP Reports Revenue Growth in First Quarter 2025
HP’s Q1 2025 results showed net revenue of $13.5 billion — up 2.4% compared to the same period in 2024.
Key financial highlights from the quarter include:
- Operating profit of $984 million, or 7.3%, slightly down from 8.4% in Q1 2024.
- Diluted net earnings per share (EPS) of $0.74, landing within HP’s predicted range of $0.70 to $0.76.
- Free cash flow of $70 million.
- Inventory valued at $8.4 billion, representing 72 days’ worth of stock — up nine days from the previous quarter.
HP CEO Enrique Lores highlighted the company’s ongoing transformation efforts.
He said:
“We are pleased with our Q1 performance, achieving revenue growth for the third straight quarter and advancing our strategy to lead the future of work,” said Lores.
“Our progress was fueled by a strong commercial business in Personal Systems and momentum in our key growth areas, including AI PCs. We are focused on taking decisive action to address evolving market conditions in the near-term, while investing in our long-term growth.”
Printing Revenue Slips, Personal Systems Sees Growth
HP’s print division saw a 2.4% year-on-year revenue drop during Q1.
However, key segments showed mixed performance:
- Total hardware unit sales increased by 5%.
- Consumer printing revenue rose by 5%.
- Commercial printing revenue fell by 7%.
The company reported that print supplies accounted for 66% of print revenue, with commercial printing contributing 27% and consumer printing making up just 7%.
Despite the dip in printing, HP’s Personal Systems business delivered strong results, helped by growing demand for AI-powered PCs.
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HP Sticks to 2025 Outlook Despite Tariff Concerns
Hewlett Packard reaffirmed its full-year outlook for 2025, targeting diluted net EPS between $2.86 and $3.16. On a non-diluted basis, excluding restructuring costs, the target range sits at $3.45 to $3.75 per share.
The company acknowledged the impact of rising US tariffs on Chinese imports, but said it has made progress in shifting its supply chain. By the end of 2025, HP expects over 90% of products for North America to be produced outside of China.
HP still views China as “an important manufacturing hub for the rest of the world” and warned that further tariffs on imports from Canada, Mexico, and the EU could trigger additional cost-cutting measures or price changes.
Share Buybacks Drop Sharply
HP scaled back its share repurchase programme during Q1 2025, buying just 2.7 million shares — down from 16.7 million a year earlier.
Dividend payments remained stable at $273 million, compared to $275 million in Q1 2024.
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HP’s Focus for 2025: Savings, AI and Supply Chain Shifts
With job cuts underway and cost-saving targets rising, Hewlett Packard’s 2025 strategy focuses on:
- Reducing operational costs through restructuring.
- Growing its AI PC and commercial hardware business.
- Managing tariff risks through supply chain diversification.
Parkhill summed up the approach to investors:
“We are holding our outlook for the year and remain focused on disciplined execution as we continue to invest for the future.”
