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HP Tumbles as Analysts See ‘Turbulence Ahead’ With Restructuring

  • Stock drops as much as 9.4%, hitting lowest since Feb. 2017
  • Loop Capital Markets downgrades the shares to neutral
HP Inc. Headquarters As Earnings Figures Are Released
Photographer: David Paul Morris/Bloomberg
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HP Inc. shares tumbled to their lowest level in more than two years on Friday after the company announced a broad restructuring designed to cut costs and boost sales growth. It will cut as much as 16% of its workforce in the reorganization, which will cost $1 billion.

The personal computer company also gave a forecast for its adjusted 2020 earnings, and both boosted its stock buyback program and lifted its dividend.