HP said it plans to carry out restructuring as its personal computer (PC) institutional sector is expected to post weak results due to rising expense.
According to the WSJ, HP expects about 4,000 to 6,000 employees to be affected by the restructuring by the end of fiscal year 2028. HP has about 58,000 employees. Enrique Lores, HP chief executive officer (CEO), said the company will adopt artificial intelligence (AI) across the organization to accelerate product and software development and automate customer support and some internal tasks.
Lores said that as the company introduces AI internally, it expects to reduce headcount in some departments and increase investment to integrate AI technology into products. He said, "I think all work will be affected by AI," and added, "We believe this is a special opportunity that we must not miss over the next 10 to 20 years to keep innovating and remain competitive as a company." HP estimated that the move will yield at least $1.0 billion in annual expense savings by the end of fiscal year 2028 (about 1.46 trillion won).
HP's adjusted earnings per share (EPS) guidance for this year came in at $2.90 to $3.20, below the market estimate of $3.32. For the quarter ending in Jan. next year, it guided adjusted EPS of $0.73 to $0.81, while Wall Street's estimate was $0.78.