HP Inc, posting a jump in Q2 revenue to $16.5bn, said it had begun the process of fully winding down all company operations in Russia over the war in Ukraine. Australian-owned global graphic design software company Canva has blocked access to its platform in Russia after speaking with the Ukrainian government.
In a statement, HP said: “In February, HP suspended all shipments to Russia. Given the current environment and long-term outlook, we have made the decision to stop all Russia activity and have begun the process of fully winding down our operations. We employ approximately 200 people in Russia and are committed to supporting them during this process.”
In HP’s Q2 2022 Earnings Call, CEO Enrique Lores added:
“More than three months into the war with Russia, the devastation and suffering across Ukraine is difficult to comprehend. So too is the situation facing the six million Ukrainian refugees. We continue to mobilize resources to support them. The HP Foundation has provided additional funding to support humanitarian relief across Central Europe. And we are donating a significant number of PCs to help refugees and their families, consistent with our global efforts to promote digital equity and education. Times like this are a painful reminder of how much work is still needed to create a more just future. And I believe it's incumbent upon companies to lead with purpose. These values have long been core to HP brand, and they will continue to guide us.
“We will also see an impact from the Russia-Ukraine war. Last February, we suspended shipments to Russia and Belarus across our portfolio and post our marketing and advertising activities. Considering the COVID environment and long-term outlook for Russia, we have decided to stop our Russia activity and have become the process of fully winding down our operations. Business there accounted for approximately $1 billion in revenue in fiscal year 2021.”
Steven Tian, research director of the Yale Chief Executive Leadership Institute, said: “HP, like many peer companies, still harboured hopes of eventually returning to the Russian market if the conflict came to a close. At this point, it is abundantly obvious that if Putin has his way, there will be no end to the invasion. More and more companies like HP are coming to grips with the fact that it will be substantively impossible for western companies to do business in Russia for a long time to come.”
HP Inc. announced fiscal 2022 second quarter net revenue of $16.5 billion, up 3.9% from the prior-year period. Printing net revenue was $5 billion, down 7% year over year. Total hardware units were down 23%, with Consumer units down 24% and Commercial units down 17%.
Australian-owned global graphic design software company Canva (valued at $US40 billion) has blocked access to its platform in Russia after speaking with the Ukrainian government to “better understand the ongoing changes in the war.” Canvas last month had dismissed criticism of its ongoing operation in Russia, saying it had a responsibility to promote 'anti-war content' in Russia.
“With increasing levels of propaganda and heavy restrictions on access to most communication platforms within Russia, we knew we had an important role and responsibility to provide a channel for promoting accurate and important information,” said Cliff Obrecht, co-founder and COO at Canva, in a statement late last week. “This included providing our global community, and particularly our Russian community, with access to pro-peace and anti-war content to champion important messages about peace, unity, and support.
“These templates have already been used more than 320,000 times to empower protest and activism around the world, with Russia being one of the top countries creating and sharing these.
“While we’re proud of the impact we’ve been able to have by raising awareness within Russia through our anti-war templates and banners, with the war escalating and the Russian government continuing to tighten its grip on protest and activism, we know the situation has now changed and our response must change with it.
“Most recently, in talking with the Ukrainian government to better understand the ongoing changes in the war, the decreasing impact that our platform can now have inside Russia became apparent to us. Our goal has always been to most effectively support Ukraine and respond in the manner most likely to help bring an end to the war, which is why we’re fully withdrawing from Russia today.
“Our pro-peace and anti-war templates will remain available to those outside Russia that wish to continue to use their voice and reach to make a difference and inspire others to get behind the cause. We stand for Ukraine, and we’ll always stand up for what we believe is right.”
