HP reveals revenue drop as it looks to make $1bn cuts

HP's cost structure reduction has seen its headcount reduced by 1,200 this year

HP Inc has announced a slump in revenue and profit for its Q2.

For the three months to 30 April, revenue was down 11 per cent year on year to $11.6bn (£7.9bn), while GAAP net profit fell 10 per cent to $660m.

HP president Dion Weisler said: "This quarter we delivered strong results and solid progress towards our long-term strategy.

"We achieved our operational objectives, unleashed truly amazing innovations, and grew in strategic areas of our business, despite tough market conditions.

"I'm confident in our ability to execute and remain committed to our plan for growth."

Despite the strong overall performance, net revenue in the Personal Systems sector was down 10 per cent year on year and net revenue in Printing was down 16 per cent over the same period.

On a conference call, Weisler said that HP remains "on track" to reduce its cost structure by more than $1bn in 2016, which has so far led to 1,200 jobs being cut.

Weisler also updated investors on HP's plans to build a new partner channel for 3D printing.

Last week HP delivered the world's first production-ready printing system which Dion claims is "a step forward towards igniting what could be the next industrial revolution".

"I'm super excited by it [the new channel]," he added. "I think the feedback from potential channel partners, from end customers and from analysts and those who follow the industry closely understand what a breathtaking breakthrough we've made towards really pulling through the printing into the mainstream."

The HP results follow the HPE figures released yesterday, which revealed that net profit had risen by five per cent to $320m in Q2.