HP Decides To Let Go Of 4K - 6K Employees After 11% Revenue Decline In Q4; Likely To Save $1.4B In Costs By FY25 - HP (NYSE:HPQ)

HP Inc HPQ announced an FY23 Future Ready Transformation plan, driving significant structural cost savings through digital transformation, portfolio optimization, and operational efficiency.
It estimates that these actions will result in annualized gross run rate savings of at least $1.4 billion by the end of FY25.
HP estimates that it will incur $1.0 billion in labor and non-labor costs related to restructuring and other charges, with $0.6 billion in FY23 and the rest split equally between FY24 and FY25.
Also Read: Amazon Confirms Downsizing Of ~10K Employees, Extends Severance Packages
It looks to reduce gross global headcount by 4,000-6,000 employees.
These actions will likely be over by the end of FY25.
HP reported fourth-quarter net revenue of $14.8 billion, down 11.2% year-on-year, beating the consensus of $14.68 billion.
Non-GAAP EPS of $0.85 beat the consensus of $0.84.
HP produced $1.9 billion in cash from operating activities and held $3.15 billion in cash and equivalents.
HP boosted the quarterly dividend by 5% Y/Y to $0.2625 per share.
HP sees Q1 FY23 non-GAAP EPS of $0.70 - $0.80, below the consensus of $0.86.
HP expects FY23 non-GAAP EPS of $3.20 - $3.60, below the consensus of $3.62.
Price Action: HPQ shares closed higher by 0.7% at $29.37 on Tuesday.

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HP Decides To Let Go Of 4K - 6K Employees After 11% Revenue Decline In Q4; Likely To Save $1.4B In Costs By FY25