Over the next three years, HP plans to cut 4,000 to 6,000 employees. After the announcement, shares rose as much as 1%.
HP is the latest technology company to say it wants to slim down. Similar changes have been made by Facebook parent companies. The Covid epidemic caused people to rush to buy computers to work and play from their homes, which led to a decline in the sales of computers.
HP said in a statement that its "Future Ready Transformation plan" should result in annual gross run rate savings of more than $1 billion over the next three years. $600 million will be coming in the fiscal year that ends in October. The rest will be split between the two fiscal years.
HP had over 50,000 employees. Between 7,000 and 9000 employees will be eliminated by HP in 2019.
Revenue in the fiscal fourth quarter was down 0.8% from a year ago. The revenue in the personal systems segment fell as units fell. The consumer revenue fell. The printing revenue was down as units were down.
Personal Systems revenue declined in the last quarter.
The operating margin for the Personal Systems segment fell to 4.5% from 6.9% in the previous quarter.
HP issued downbeat earnings guidance.
The company gave a range of adjusted fiscal first quarter earnings from 70 cents to 80 cents per share, below the consensus of 86 cents.
HP expects adjusted earnings per share to be between $3.20 and $3.60 for the fiscal year that begins in July.