HP to cut up to 2,000 more jobs, sees weaker profit on Trump tariffs
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HP CEO Enrique Lores said rising component costs and US tariffs on imports from China are weighing on profit.
PHOTO: ST FILE
NEW YORK – HP said it would lay off up to 2,000 more employees as part of a continuing cost-cutting plan, bringing the total number of job cuts under the restructuring to as many as 9,000, The Wall Street Journal reported on Feb 27.
This will save roughly an additional US$300 million (S$404.5 million) by the end of its 2025 fiscal year in October.
The computer and printer giant also gave a profit outlook for the current quarter that fell short of expectations, citing the impact of rising component costs and tariffs on goods from China.
Earnings, excluding some items, will be 75 US cents to 85 US cents a share in the period ending in April, the company said in a statement on Feb 27. Analysts, on average, estimated 85 US cents.
Rising component costs and US tariffs on imports from China are weighing on profit, chief executive Enrique Lores said in an interview. Still, a diverse supply chain is helping HP mitigate most of the impact and by the end of the fiscal year less than 10 per cent of goods sold in North America will come from China, he added.
Investors have been concerned about the impact US President Donald Trump’s planned tariffs will have on the computer industry, which is highly reliant on imports from overseas manufacturing hubs. Like many tech peers, HP contributed to Mr Trump’s inauguration fund earlier in 2025.
As far as product pricing in response to the tariffs, HP will be making some “specific adjustments”, Mr Lores said.
HP shares fell about 3.5 per cent in extended trading on Feb 27 after closing at US$33.13 in New York. The stock has gained 1.5 per cent in 2025.
In the fiscal first quarter ended Jan 31, revenue increased 2.4 per cent to US$13.5 billion, led by a 10 per cent expansion in sales for business computers. That exceeded analysts’ average estimate of about US$13.4 billion.
A recovery in the long-ailing personal computer market has started to materialise in recent quarters. Shipments of PCs ticked up 1.8 per cent in the fourth quarter of 2024, according to industry research firm IDC.
Earlier in February, HP announced it would acquire assets from Humane Inc, the maker of the Ai Pin wearable artificial intelligence (AI) assistant, introduced in late 2023, for US$116 million. It is part of HP’s push to offer more generative AI features locally, especially through AI-optimised PCs.
HP also affirmed its previous guidance for 2025 free cash flow of as much as US$3.6 billion and annual adjusted profit of as much as US$3.75 per share. BLOOMBERG
