[News] HP to Shift Production for North America Out of China by June, Cut Jobs and Raise Prices Amid Tariffs

According to a report from ijiwei, citing Wall Street Journal, HP plans to raise prices on some of its products and accelerate the relocation of more production lines out of China in response to mounting tariff pressure. The move comes as the company lowered its full-year outlook, citing greater-than-anticipated tariff costs and weakening hardware demand in the recent quarter, the report adds.

In its push to shift manufacturing out of China, the company expects that nearly all products destined for the North American market will be produced elsewhere by the end of June, according to the report, citing Chief Executive Enrique Lores.

The report highlights that HP has ramped up production in countries including Vietnam, Thailand, India, Mexico, and the U.S.

Notably, while countries like India emerge as new manufacturing hubs, Tom’s Hardware notes that Saudi Arabia is also drawing interest, with leading PC makers Lenovo, HP, and Dell reportedly considering expanding their operations there.

HP’s Cost-Cutting and Job Reduction Strategy

In addition, the report states that HP plans to implement “targeted pricing actions” while also placing greater emphasis on cost management.

Lores said HP’s cost-cutting initiative—announced in November 2022 and involving up to 9,000 job cuts—is running slightly ahead of schedule and is now expected to generate greater savings than originally projected, as cited by Wall Street Journal.

As per a CRN report in February, HP plans to cut up to 2,000 jobs as it navigates the potential impact of tariffs and intensifying competition in the PC market.

Lores expects these combined measures to fully offset tariff costs by HP’s fiscal fourth quarter, which ends in October, as Wall Street Journal indicates.

For the current quarter, the company reported a net income of USD 406 million for the three months ended April 30, down from USD 607 million in the same period last year.

For fiscal 2025, HP now expects adjusted EPS of USD 3.00 to USD 3.30, down from its earlier projection of USD 3.45 to USD 3.75, as highlighted by the Wall Street Journal.

Read more

• [News] PC Giants Lenovo, HP, and Dell Reportedly Set Sights on Saudi Arabia Production Amid Tariffs Risks
• [News] iPhone Production Steady in China, PC Makers Pause U.S. Shipments Amid Tariffs

(Photo credit: HP)