HP INC Annual Report - How They Did This Year

Let's dive into HP Inc.'s year, ending October 31, 2025. This first look gives us some insights into their ongoing efforts to streamline operations and prepare for the future.

Major Changes & Future Plans: Streamlining for the Future

HP Inc. has been busy with significant restructuring efforts, both wrapping up an older plan and announcing a new one. These plans are about making the company more efficient and better positioned for the future, though they do come with upfront costs.

Wrapping Up the Fiscal 2023 Restructuring Plan: This plan, which started in November 2022, is nearing completion. Over the past year (ending October 31, 2025), HP Inc. incurred $107 million in costs related to this plan. These costs primarily covered:

• $91 million for employee severance and early retirement programs.
• $15 million for other non-labor related expenses, such as consolidating facilities or optimizing their supply chain.
• $1 million for other miscellaneous plan costs.

Since the plan began, HP Inc. has spent a total of over $1 billion on these restructuring efforts. As of the end of this fiscal year, there's only about $53 million left to pay out for this particular plan.

Looking Ahead: The Fiscal 2026 Restructuring Plan: Right after the fiscal year closed, on November 25, 2025, HP Inc. announced a brand new restructuring plan, which they expect to implement through fiscal year 2026. This plan has estimated costs ranging from $1 billion to $1.5 billion. A large portion of these costs, about 70% to 80%, will likely be for labor-related expenses, similar to the previous plan, meaning more employee severance and related benefits as they continue to optimize their workforce and operations. This indicates the company's commitment to ongoing efficiency improvements, representing a significant future expense.