HP Inc is slashing up to 6,000 jobs and delivering a grim earnings outlook that sent shares tumbling 5% after hours. The PC and printer giant directly blamed U.S. trade regulations for driving up costs and forcing the painful restructuring. It's the second massive layoff round in three years as hardware companies struggle with regulatory headwinds and consumer spending shifts.
HP Inc just delivered a brutal one-two punch to investors. The computing giant announced it's cutting up to 6,000 jobs while issuing earnings guidance that fell well short of Wall Street's expectations, sending shares down 5% in after-hours trading Tuesday.
The layoffs represent roughly 10% of HP's workforce and will be completed by the end of fiscal 2028. But it's the company's explanation that's raising eyebrows across Silicon Valley. "HP's outlook reflects the added cost driven by the current U.S. trade-related regulations in place, and associated mitigations," the company said in its earnings statement - a direct shot at ongoing trade policies affecting hardware manufacturers.
HP's fourth-quarter results actually beat expectations, with adjusted earnings of 93 cents per share versus the 92 cents analysts expected. Revenue came in at $14.64 billion, topping the $14.48 billion consensus. But investors were looking ahead, and what they saw wasn't pretty.
For fiscal 2026, HP projects adjusted earnings between $2.90 and $3.20 per share - well below the $3.33 Wall Street was expecting. The first quarter alone is expected to deliver just 73 to 81 cents per share, with the midpoint missing analyst estimates of 79 cents.
This marks HP's second major workforce reduction in three years. The company announced a similarly sized round of cuts in 2022, part of a broader tech industry contraction as companies grappled with post-pandemic demand shifts and rising interest rates.
The restructuring isn't just about cutting costs - it's about survival in an increasingly hostile regulatory environment. HP expects the layoffs to generate at least $1 billion in annual savings by the end of fiscal 2028, though the company will take $650 million in charges to get there, with $250 million hitting fiscal 2026 alone.
HP's struggles reflect broader challenges facing hardware manufacturers caught between U.S.-China trade tensions and slowing consumer demand. The company's stock has plummeted 25% this year while the S&P 500 gained 15%, underscoring how investors have soured on traditional tech hardware plays.
CEO Enrique Lores, who previously told CNBC that tariffs were "mostly nonmaterial", now finds his company directly citing trade regulations as a key factor in its outlook. The shift suggests the cumulative impact of trade policies is finally hitting HP's bottom line in ways that can no longer be absorbed through operational adjustments.
