HP CEO Enrique Lores steps down after six-year tenure marked by AI transformation and print subscription strategy, as the company appoints interim chief Bruce Broussard while searching for permanent successor.
After six years at the helm, HP CEO Enrique Lores is departing to lead PayPal, marking the end of a tenure defined by the company's pivot toward AI-enabled workplace technology and attempts to modernize its traditional print business. The leadership transition, effective March 1, sees HP appointing Bruce Broussard as interim CEO while the board searches for a permanent successor.
Lores, who began his HP career as an intern before ascending to the corner office in late 2019, oversaw a period of significant transformation for the 85-year-old technology giant. His leadership coincided with HP's efforts to reposition itself as an AI-focused workplace tech company while defending its core PC and printer franchises against a challenging hardware market.
The AI Pivot and Print Subscription Strategy
One of Lores' most notable initiatives was HP's push to make printing a subscription service, part of a broader strategy to move away from traditional hardware sales toward recurring revenue models. This move came as the company faced pressure from declining PC demand and sought to leverage artificial intelligence capabilities in its product lineup.
The subscription approach aimed to lock in customers through ongoing service relationships rather than one-time hardware purchases. However, this strategy faced resistance from users who preferred traditional ownership models, contributing to mixed results in HP's efforts to modernize its print business.
Financial Performance Under Scrutiny
Despite Lores' ambitious transformation agenda, HP's financial performance during his tenure has drawn attention. When he took over in 2019, the company was generating approximately $58.8 billion in annual revenue. Six years later, that figure has declined to roughly $55.3 billion, raising questions about the effectiveness of the company's strategic initiatives.
The revenue stagnation occurred despite years of restructuring efforts and investments in AI-enabled products and services. HP's Q4 results, which preceded the leadership announcement, revealed a restructuring plan that could eliminate between 4,000 and 6,000 jobs by 2028, underscoring the ongoing challenges in the hardware market.
Cross-Sector Leadership Move
The transition to PayPal represents an interesting cross-industry move for Lores. The payments company, which has seen its stock tumble by more than 23 percent in the last three months, is seeking experienced leadership to drive growth and execution. PayPal's board evaluated its competitive position before selecting Lores, citing his "strong track record" and "disciplined execution."
For PayPal, Lores brings experience managing legacy businesses while pursuing emerging services – a skill set that could prove valuable as the payments platform navigates its own growth challenges and competitive pressures in the fintech space.
Interim Leadership and Succession Planning
HP's appointment of Bruce Broussard as interim CEO reflects the board's desire for experienced leadership during the transition period. Broussard, a board member since 2021, brings extensive corporate experience from his more than decade-long tenure running healthcare giant Humana and earlier leadership roles at US Oncology.
The board has engaged a global search firm to identify a permanent successor, signaling that the leadership change is part of a broader strategic reassessment. Broussard's healthcare background may provide fresh perspective on HP's efforts to position itself as a provider of workplace technology solutions.
Industry Context and Market Challenges
Lores' departure comes amid broader industry challenges affecting the PC and printer markets. Memory shortages and economic uncertainty have contributed to slower-than-expected AI PC sales, while enterprise budget constraints continue to weigh on hardware demand.
HP's struggles reflect wider industry trends, including the shift toward cloud computing, the rise of mobile devices, and changing workplace technology needs in the post-pandemic era. The company's ability to adapt to these shifts while maintaining profitability in its traditional businesses has been a central challenge throughout Lores' tenure.
Legacy and Future Direction
The leadership transition raises questions about the future direction of HP's AI and subscription strategies. While Lores championed these initiatives, the next CEO will need to assess their effectiveness and potentially chart a new course if market conditions warrant.
For employees and investors, the change in leadership represents both uncertainty and opportunity. The new CEO will inherit a company that has undergone significant transformation but faces ongoing pressure to deliver growth in a competitive technology landscape.
As HP searches for its next leader, the technology industry will be watching closely to see whether the company can break out of its revenue stagnation and successfully execute on its vision of AI-enabled workplace technology. The outcome will likely influence how other traditional hardware companies approach their own digital transformation efforts in an increasingly software-driven world.
The transition also highlights the growing convergence between traditional technology companies and digital services platforms, as evidenced by Lores' move from a hardware-focused company to a payments technology leader. This trend suggests that future technology leaders may need to be equally comfortable with both physical products and digital services to succeed in an evolving industry landscape.
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