New cost savings plan will be shared this coming investor day to entice and support share price. The plans will reinforced the return of 100% cashflow with more cost cuts (package as business efficiencies). Approximately 3000 more headcounts will be reduced over and above what had been shared before, with additional cost savings of 750m to 1b a year.
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The plan that the company shared will always be lowballing, so as to over deliver to boost the image of the C suite ability to execute. As such, the real WFR (cost savings) will be higher than on plan.
"Approximately 3000 more headcounts will be reduced over and above what had been shared before, with additional cost savings of 750m to 1b a year."
Many commenters seem to miss the point: HP has enough attrition to achieve the 3k reduction number in a year without announcing any additional layoffs. I don't think the OP meant that HP was going to announce layoffs and the word used was "headcounts will be reduced." HP simply won't fill those positions and will burn out the remaining employees.
"Only the layoff part is not correct."
Sure. Minor detail. Not at all relevant to this site.
"cost savings" in this context and in that forum is a euphemism for layoffs. Sure, all spend is under scrutiny right now, but inventors don't care about your plans to constrain T&E, eliminate training, optimize software and cloud spend, curtail PAC donations, etc. because all of that is a drop in the bucket compared to labor.
"and today, we shared that we expect to exceed the three-year cost savings target we announced last November"
Big savings everywhere: All these EDI drives and expenditures suddenly grinding down. With BLM declaring their support for Ha--s, it is becoming rather awkward. Hence exceeding the target.
Umm.... to those saying the OP was wrong, what do you think was meant by the "and today, we shared that we expect to exceed the three-year cost savings target we announced last November" statement in the company-wide comms that went out? That cost savings plan revolved around WFRs.
Ummm.... to those saying the OP is wrong, what exactly do you think was meant by the "and today, we shared that we expect to exceed the three-year cost savings target we announced last November" in the company-wide comms? That cost-savings plan revolved around WFRs.
Only the layoff part is not correct. The reinforced 100% returns to shareholders is still right
Soooo, the OP turned out to be a bullshister. Surprise!
So that is the plan this week. It will change next week. Execs have no strategy.
Will another EER be part of this new plan?
it's crystal clear that the company will keep cutting cost and hc as the industry they are in are commoditized and/or sunseting (print). ultimately when no cost can be trimmed, won't be surprised that Print and Pc will split to further milk the last bit of juice to fatten the C-suite.
Mohan is trying to beef up his portfolio by providing dogmatic statements of the market. It's fake hype to get people to invest.
Notice that HP's didn't even change after that "announcement".
So basically BoA is underwater on the HP shares they have and Mohan is doing his best to get them out of it.
"One reason for the double upgrade was Mohan’s belief that the personal computer market should recover, driving growth at the maker of personal computers and printers."
Buffett is a lot smarter and carries a lot more weight (and HP shares) in the market than "Mohan's belief."
BARRON'S Tue, October 3, 2023 at 9:00 AM PDT
HP Inc. stock is now a Buy said a BofA Securities analyst who sees an improving PC market and a possible bottom in the company’s free cash flow. BofA Securities analyst Wamsi Mohan double upgraded shares of HP (ticker: HPQ) to Buy from Underperform and raised his price target to $33 from $25, implying a 29% upside to the stock’s closing price on Monday. One reason for the double upgrade was Mohan’s belief that the personal computer market should recover, driving growth at the maker of personal computers and printers.
"Or could be something else entirely. Unless OP is Enrique, they don't know squat."
Buffett unloaded even more HP shares this week. He owns less than 9% now. Without Buffett's support the stock will go a lot lower, which is the only thing Enrique cares about.
"Berkshire Hathaway’s ownership of HP Inc. is about to drop below 10% after it sold nearly 5 million shares, according to a regulatory filing by Buffett’s company late Monday.
The Securities and Exchange Commission requires investors who own less than 10% of a company to report their company holdings only on a quarterly basis rather than big investors who must disclose their actions closer to the time of a so-called “triggering” event, which can mean buying or selling shares.
Many investors do watch Buffett’s moves closely because of his extremely successful track record over the years."
Could be that, or could be the opposite of that. Or could be something else entirely. Unless OP is Enrique, they don't know squat.