HP is launching a sweeping multi-year restructuring plan that will cut thousands of jobs even as the company reports rising revenue and stronger cash flow for the fourth quarter.
In a new press release, the company reports $14.6 billion in revenue during the period, up more than 4% from a year earlier.
The firm’s operating cash flow reached $1.6 billion, and free cash flow came in at $1.5 billion. HP returned $800 million to shareholders through dividends and buybacks and announced a dividend increase to $0.30 per share.
As part of a new fiscal 2026 plan, HP says it will use artificial intelligence to drive customer satisfaction, improve product development and boost operational productivity. The company expects the initiative to produce roughly $1 billion in gross run-rate cost savings by the end of fiscal 2028.
HP says those savings will be accompanied by approximately $650 million in labor and non-labor restructuring charges, including $250 million in fiscal 2026. The company expects to reduce global headcount by 4,000 to 6,000 employees by the end of fiscal 2026.
Says HP CFO Karen Parkhill,
“Looking forward, we are taking decisive actions to mitigate recent cost headwinds and are investing in AI-enabled initiatives to accelerate product innovation, improve customer satisfaction, and boost productivity. We are confident these actions will strengthen our foundation and position us for long-term growth.”
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