Profit slide at HP can only mean one thing: Hammer time
- Reference: 1740749351
- News link: https://www.theregister.co.uk/2025/02/28/hp_cuts_jobs_as_profits_slide/
- Source link:
Confirmation of an "amendment to its current" multi-year "restructuring plan" comes days after it emerged that Enrique Lores, corporate captain of its tech tanker, was [1]awarded $19 million in the most recent full financial year.
HP deliberately adds 15 minutes waiting time for telephone support calls [2]READ MORE
"HP expects incremental gross workforce reductions of approximately 1,000 to 2,000 employees in connection with the amendment. The changes to the workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives," it says in an [3]SEC filing [PDF].
This equates to between 1.77 percent to 3.44 percent of the 58,000 people that HP employs. The cost-cutting programme began in fiscal 2023 and run to fiscal 2025 ended October 31, at which point HP says it'll have expunged $1.9 billion in expenses.
Jettisoning more staff is to incur $150 million in restructuring and other charges in connection with the "plan," and these total charges will amount to $1.2 billion over the three financial years.
[4]
Lores said he was "pleased" with the commercial performance for [5]Q1 ended January 31 , with the results published last night (UTC time). He added:
[6]
[7]
"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."
[8]Trump tariffs forcing rethink of PC purchases stateside
[9]Laptop makers stalled on repairability improvements
[10]AI PCs: 'Something will have to give in 2025, and I think it's pricing'
[11]The mystery of the rogue HP calculator: 12C or not 12C? That is the question
[12]HP to discontinue online-only e-series LaserJet amid user gripes
Karen Parkhill, HP CFO, who was awarded $15 million in fiscal 2024, added, "In Q1 we drove solid progress against our financial commitments for the year and are raising our Future Ready savings target from $1.6 to $1.9 billion dollars by the end of fiscal year 2025."
“We are holding our outlook for the year and remain focused on disciplined execution as we continue to invest for the future."
HP ditches 15-minute wait time policy due to 'feedback' [13]READ MORE
The PC division, Personal Systems Group, reported 5 percent year-on-year revenue rise to $9.2 billion. Within this, Consumer was down 7 percent $2.57 billion and Commercial was up ten percent to $6.64 billion.
In the Printer wing of the organization, Supplies dropped 1 percent to $2.826 billion, Commercial Printing was down 7 percent to $1.14 billion, and Consumer Printing was up 5 percent to $299 million.
Total earnings before tax slid to $704 million versus $793 million, down 11 percent and a likely reason why HP decided to reduce the workforce more than expected. Tech businesses operating in a declining orbit need to keep those shareholders happy. ®
Get our [14]Tech Resources
[1] https://www.theregister.com/2025/02/26/hp_ceo_pay_for_2024/
[2] https://www.theregister.com/2025/02/20/hp_deliberately_adds_15_minutes/
[3] https://d18rn0p25nwr6d.cloudfront.net/CIK-0000047217/cb995c46-25d4-4c73-b349-cc571a37431c.pdf
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z8Hrt_9jyF4FcyWCI7WUzQAAAFc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://investor.hp.com/news-events/news/news-details/2025/HP-Inc.-Reports-Fiscal-2025-First-Quarter-Results/default.aspx
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z8Hrt_9jyF4FcyWCI7WUzQAAAFc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z8Hrt_9jyF4FcyWCI7WUzQAAAFc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2025/02/27/trump_tariffs_pc_purchases/
[9] https://www.theregister.com/2025/02/20/laptop_manufacturers_repairability/
[10] https://www.theregister.com/2024/11/22/premium_priced_ai_pcs/
[11] https://www.theregister.com/2024/09/21/hp_12c_calculator_mystery/
[12] https://www.theregister.com/2024/07/09/hp_to_discontinue_eseries_laserjets/
[13] https://www.theregister.com/2025/02/21/hp_ditches_15_minute_wait_time_call_centers/
[14] https://whitepapers.theregister.com/
At first, we have HP
with profits down.
After Trump 2.0's first month and a bit of taking an axe to Jobs in the Federal Government, the US is plunging into a recession like a Ukrainian drone falling onto a Russian T72 tank.
They are only the first large company in the US (and worldwide) to report lower profits. Get used to it people.
That recession could easily turn into a depression. Good luck USA, there will be no funding for the soup kitchens as Bezos, Zuck and the rest of the billionaires take all the money they can and to hell with what the voters want.
Who will be next?
Tesla? Given the anti Musk feeling in many parts of the world I'd say that Wall St is building in a hefty loss this quarter.
I posted this not long after seeing a transporter loaded with Chinese built Model 3's heading towards London on the M3.
IMHO, there is so much choice in the UK and the EU now, why buy or mostly lease a Tesla especially with all those extra taxes about to hit cars priced over £50K here in the UK.
Re: Who will be next?
The P/E ratio of Tesla is around 175. Which is lunacy.
I get the impression that the founders of Tesla started off OK and the cars were new and innovative. Since then, Musk has brought empty promises, faked demos and the Wankpanzer. The problem the US has now is that the big tech companies - which are all of the gains in the stock market plus a bit - have nothing new. They are busy investing trillions in AI "solutions" with no trillion-dollar problem that requires them. Meanwhile they are trying to up the income by making everything a subscription - no such thing as buying a gizmo and just using it until it breaks.
I do believe it's time for a beer.
Re: At first, we have HP
"That recession could easily turn into a depression."
You may be right. Some of the economic damage is structural and probably irreversible in the short to midterm; the reputational harm is probably irrecoverable.
"the billionaires take all the money they can"
That's assuming it's a deflationary (or is it stagflationary?) depression like '29 but even more likely given the lower actual non service production of the US to be inflationary (or hyperinflationary) which in the event could mean that these prats' billions might not be worth so much.
The importance and centrality of the USD in the world economy has decreased in the last few decades and more rapidly in the last five with the current administration hastily nailing the last few nails into its coffin. One might suggest an own goal to the likes of BRICS.
Hey, I have a radical idea. What if we stopped profit loss by, hear me out here, stopping giving customers so many reasons to buy another brand?
It is a constant paradox that in businesses which serve the customer, the bosses must fail to use the service themselves so can't see if their product/service matches expectations.
On the other hand, if you are taking home $19 million, why should you care at all?
Ah, I remember the days when HP was run by engineers, made bloody good products, provided excellent customer service and valued all their staff at every level. They were highly regarded in every field they served and were a byword for quality and integrity. Pity they've pissed it all away now.
Could HPs woes have anything to do with customers getting pissed off and GOING ELSEWHERE?
Shouldn't they...
Give their workers a 15 minute wait-time before firing them ?
Re: Shouldn't they...
They will fire then but have a 15 minute wait time before they tell them that they are fired.
¿what happened to El Reg's traditions?
The Reg had a habit of using HP ink and HPe to reffer to both companies.
aside from extracting a chukle from the audience, one knew from the get go which companywas the article about.
instead, here one had to read to the second paragraph to know, and only if you remember that Llores is the CEO of HP ink. If not, you need to read even more.
Pretty please El Reg, ¡enshrine the mandatory use of HP ink and HPe in your style manual!