Following President-Elect Donald Trump's election victory, PC brands are intensifying their strategic shifts. Hewlett-Packard (HP), the world's second-largest PC maker, has reportedly moved to restructure its senior procurement and R&D operations. Industry sources suggest the company is preparing another round of R&D layoffs as it redirects focus toward North America.
Strategic leadership realignment
In response to the US presidential election, HP has accelerated its organizational realignment. Industry sources indicate that global senior VP Kenny Chien has retained his role, but procurement authority has shifted to newly appointed chief Jonathan Jennings. Recent changes also added a layer of foreign executives above Chinese procurement managers, which industry observers interpret as reducing their decision-making power.
HP has restructured its senior R&D and business leadership. Alex Cho, president of the Personal Systems division and previously seen as a top contender for CEO, has seen his responsibilities reduced, with Poly and workstation business units reassigned under new management.
Ernest Nicolas, HP's Chief Supply Chain Officer, has taken on additional oversight of IT and cybersecurity. As procurement authority consolidates in North America, industry observers speculate Nicolas may become a leading candidate for the CEO role.
Jonathan Jennings, newly appointed as procurement head and a key deputy to Nicolas, now manages procurement operations. Meanwhile, Chien has transitioned to a strategic role, utilizing his supply chain expertise and political network. HP has not officially confirmed these changes.
Supply chain sources note that HP is one of several brands making personnel adjustments to adapt to anticipated changes under Trump's presidency, including diversifying production. However, HP's actions stand out as more proactive and urgent, given its deep integration with Taiwan's supply chain.
Industry sources also note that HP's personnel changes have kept partners actively engaged, as they work to realign and strengthen relationships. Jennings' automotive background and limited PC supply chain experience have made Cho, a longtime collaborator, a key focus in these transitions.
Key drivers of organizational change
Analysts attribute HP's organizational shifts to two primary factors: responding to changes in US politics and preparing for an anticipated slowdown in the PC market.
One key driver is the evolving US political landscape. With Trump set to assume office in January 2025 and Republicans controlling Congress and the House, policies, including tariff hikes, are likely to advance swiftly. This will impact US-China-Taiwan relations and reinforce the "Taiwan +1" strategy, aimed at diversifying supply chains beyond Taiwan.
In the post-pandemic period, HP concentrated on procurement efforts in Taiwan, expanding its R&D and procurement teams. Recently, however, the company has scaled back, shifting senior authority back to North America and diversifying operations into Southeast Asia, including Singapore.
HP is also making mid and lower-level workforce adjustments. Sources indicate that its Taiwan R&D team could face 5-10% layoffs before the Lunar New Year, reflecting concerns about the PC market's weakened outlook.
While brands, ODMs, and research firms forecast modest PC market growth by 2025, momentum remains constrained. HP is redirecting hardware R&D efforts toward AI applications and higher-growth projects, aligning with broader industry trends.
PC market growth is expected to remain subdued in 2024, with the holiday sales season offering limited upside. The industry is turning its attention to 2025, driven by the end of Windows 10 support, which could spark a wave of business PC upgrades. AI-enabled PCs may also fuel consumer demand, with forecasts projecting single-digit growth for the year.
