HP to Shift 90% of North American Production Out of China, Lay Off Up to 2,000 Workers

The restructuring aims to mitigate tariff impacts and cut costs while focusing on AI-driven growth and supply chain diversification.

HP plans to relocate 90% of its North American product manufacturing outside of China by the end of fiscal year 2025 to address tariff challenges and enhance supply chain resilience.
The company announced up to 2,000 additional layoffs, bringing the total job cuts under its 'Future Now' restructuring plan to 9,000 since 2022.
HP expects to save $1.9 billion through its restructuring efforts by fiscal year 2025, despite incurring $1.2 billion in associated costs over three years.
First-quarter revenue grew by 2.4% to $13.5 billion, driven by a 5% increase in PC sales, particularly in AI-capable devices, though profits declined year-over-year.
The company faces economic pressures, including new U.S. tariffs on Chinese imports, which are expected to impact its second-quarter earnings.