Core Viewpoint - HP Inc. announced plans to lay off between 4,000 to 6,000 employees by the end of fiscal year 2028 as part of its operational streamlining and AI initiatives aimed at accelerating product development and enhancing customer satisfaction and productivity [2][4] Group 1: Layoff Details - The layoffs will affect product development, internal operations, and customer support teams, with an expected annual cost saving of $1 billion (approximately 7.08 billion RMB) over three years [4] - As of last year, HP had a total workforce of 58,000, indicating that the layoffs could exceed 10% of its workforce [5] - The restructuring will incur approximately $650 million (around 4.6 billion RMB) in costs, with about $250 million (approximately 1.77 billion RMB) accounted for in fiscal year 2026 [5] Group 2: Financial Performance - For fiscal year 2025, HP reported total revenue of $55.295 billion (approximately 391.51 billion RMB), a year-on-year increase of 3.24%, while net profit decreased by 8.86% to $2.529 billion (approximately 17.91 billion RMB) [5] - The company's stock price fell over 5% in after-hours trading following the layoff announcement, closing at $23.98 per share (approximately 169.79 RMB) with a market capitalization of $22.469 billion (approximately 159.09 billion RMB) [4] Group 3: Market Context and AI Strategy - This marks the second round of layoffs for HP this year, following an earlier announcement in February to cut 1,000 to 2,000 jobs [6] - HP is actively investing in AI, with AI PC products accounting for over 30% of its total shipments as of October 31 [6] - The company is facing rising costs due to increased prices of memory chips, which may pressure profitability for HP and other consumer electronics manufacturers [6][9] Group 4: Future Earnings Projections - HP expects earnings per share for fiscal year 2026 to be between $2.90 and $3.20 (approximately 20.53 RMB to 22.66 RMB), below the analyst average estimate of $3.33 (approximately 23.58 RMB) [7] - The next quarter's earnings per share is projected to be between $0.73 and $0.81 (approximately 5.17 RMB to 5.74 RMB), with the midpoint lower than market expectations [7]