HP Inc sales plummet 12%, with tough times ahead

HP Inc reports a big drop in revenues, and the CEO predicts some difficult quarters to come

HP Inc reported a 12% fall in sales in the first quarter of 2016, compared with the same period a year ago, and the supplier said it expects tough times ahead.

The company – which was the printer and PC unit of Hewlett-Packard (HP) before it split – made sales worth $12.2bn in the three-month period, compared with $13.9bn in the same quarter a year ago.

In November 2015, HP split into two different companies: The printing and devices business HP Inc, and enterprise-focused organisation Hewlett-Packard Enterprise (HPE).

Total units sales for HP Inc in the quarter were 13% down, with notebooks units falling 8% and desktops 13%. Printing revenue was down 17%.

In the previous financial quarter, HP Inc reported that total unit sales were down by 12%, with desktops units dropping 17% and notebooks units down 5%. Printing revenue was 14% lower year-over-year. At the time, HP Inc said it was protecting its core business now that it is on its independent journey.

“We have a clear strategy that leverages our strengths. We are focused on execution, taking cost out of the business and delivering innovations that will amaze our customers and partners,” said Dion Weisler, CEO at HP Inc. “Although we have some tough quarters ahead, I am confident in the future.”

According to reports, HP Inc has already announced redundancies. In a conference call with analysts, HP executives said that nearly 3,000 workers will leave the company by the end of 2016, rather than 1,200 workers this year and the rest spread over the next two.

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