President Trump’s recently imposed tariffs on Chinese goods have struck a chord with industry manufacturer HP. The Palo Alto, California, firm announced it would lay off up to 2,000 employees globally, resulting in $300 million in savings by the end of fiscal year 2025, according to several sources citing the OEM’s Feb. 27 filing with the Securities and Exchange Commission (SEC).
The move is in alignment with the company’s “Future Now” cost-cutting initiative, launched in November of 2022, that initially triggered 7,000 layoffs. HP expects to incur about $150 million in related charges for this latest round. The OEM projected $1 billion in restructuring fees at the onset of “Future Now,” according to the Wall Street Journal.
The 9,000-job reduction is expected to save HP nearly $2 billion. Per the SEC filing, the new round of cuts will vary by country, “based on local legal requirements and consultations with employee works councils and other employee representatives.” HP has 58,000 team members across 59 countries, according to the newspaper.
HP enjoyed a better-than-anticipated Q1, with increased demand for its new technologies, namely the AI-powered PCs. CEO Enrique Lores pointed out that the company enjoyed 25% growth in the PC market.
The Q1 earnings report pointed out that HP made significant strides in constructing a “globally diverse supply chain,” with more than 90% of its products projected to be sold outside of China by the end of FY2025. Still, the tariffs were expected to impact Q2 earnings, yielding results lower than expected.
HP registered a profit of $565 million in Q1, with revenue increasing 2.4% to $13.5 billion. Printing revenue, on the other hand, slipped 2%.
