On November 25, 2025, HP’s Board of Directors approved the Fiscal 2026 Plan intended to drive customer satisfaction, product innovation, and productivity primarily through artificial intelligence adoption and enablement that HP expects will be implemented through fiscal 2028. HP expects to reduce global headcount by approximately 4,000 to 6,000 employees. HP estimates that it will incur pre-tax charges of approximately $650 million relating to labor and non-labor actions. During the course of the Fiscal 2026 Plan, HP expects to incur approximately $500 million in labor costs related to workforce reductions and expects the remaining costs to relate to non-labor actions and other charges.

On November 18, 2022, HP’s Board of Directors approved the Fiscal 2023 Plan intended to enable digital transformation, portfolio optimization and operational efficiency that HP implemented through fiscal 2025. The Fiscal 2023 Plan is substantially complete. HP does not expect any further significant costs associated with the plan. Approximately 9,500 employees departed as part of the plan through a combination of employee exits and voluntary EER. HP incurred $877 million in severance costs and $347 million in infrastructure costs related to non-labor and other charges.


	Fiscal 2026 Plan
	Three months ended April 30, 2026		Six months ended April 30, 2026
Severance	$	51	$	162
Non-labor	18		23
Special Termination Benefit	280		280
Other charges(1)	16		22
	$	365	$	487
Other prior plan costs(2)	—		4
	$	365	$	491


	Fiscal 2023 Plan
	Three months ended April 30, 2025		Six months ended April 30, 2025
Severance	$	97	$	141
Non-labor	8		20

Other charges(1)	17		31
	$	122	$	192

(1) Other charges are distinct from ongoing operational costs and primarily include third-party professional services and other non-recurring costs, which include artificial intelligence adoption and enablement costs under the Fiscal 2026 Plan. Effective second quarter of fiscal 2026, other charges also includes CEO transition costs, which comprises of executive hiring and retention costs.

(2) Other prior plans primarily include the fiscal 2023 plan, which is substantially complete. HP does not expect any further material activity associated with this plan.


	Fiscal 2026 Plan
	Severance		Non-labor		Other prior-year plans		Total
	In millions
Accrued balance as of October 31, 2025	$	—	$	—	$	172	$	172
Charges	162		23		4		189
Cash payments	(54)		(9)		(109)		(172)
Non-cash and other adjustments	—		(14)		2		(12)
Accrued balance as of April 30, 2026	$	108	$	—	$	69	$	177

Reflected in the Condensed Consolidated Balance Sheets
Other current liabilities	$	76	$	—	$	65	$	141
Other non-current liabilities	$	32	$	—	$	4	$	36


Accrued balance as of October 31, 2024	$	—	$	—	$	138	$	138
Charges	—		—		161		161
Cash payments	—		—		(118)		(118)
Non-cash and other adjustments	—		—		(15)		(15)
Accrued balance as of April 30, 2025	$	—	$	—	$	166	$	166

As of April 30, 2026, HP has incurred $0.5 billion and $1.2 billion of total costs for the Fiscal 2026 plan and the Fiscal 2023 plan, respectively.

As part of the Fiscal 2026 Plan, HP announced a voluntary Enhanced Early Retirement (“EER”) program for its U.S. employees in March 2026. Voluntary participation in the EER program was limited to employees at least 55 years old with 10 or more years of service at HP. Employees accepted into the EER program are leaving HP on dates ranging from May 29, 2026 to April 30, 2027. The U.S. defined benefit pension plan was amended to provide that the EER benefit will be paid from the plan for eligible electing EER participants.

The retirement incentive benefit is calculated as a lump sum based on years of service at HP at the time of retirement, ranging from 20 to 52 weeks of pay. As a result of this retirement incentive, HP recognized a Special Termination Benefit (“STB”) expense of $220 million as restructuring and other charges for the three and six months ended April 30, 2026. The expense has been recorded as a reduction from the Prepaid pension and post-retirement benefit assets reflected under Other non-current assets in the Condensed Consolidated Balance Sheets.

All employees participating in the EER program were offered the opportunity to continue health care coverage at the active employee contribution rates for up to 36 months following retirement, but not beyond age 65 when Medicare is available. HP recognized an additional STB expense of $60 million as restructuring and other charges for the three and six months ended April 30, 2026 for the health care incentives. The expense has been recorded in the Pension, post-retirement and post-employment liabilities reflected under Other non-current liabilities in the Condensed Consolidated Balance Sheets.