HP to Cut Up to 6,000 Jobs by 2028 Amid AI-Driven Restructuring

HP Inc. announced plans to reduce its global workforce by 4,000 to 6,000 employees by the end of fiscal year 2028, representing up to 10% of its current headcount. This strategic decision is part of a broader initiative to integrate artificial intelligence (AI) more deeply into the company's operations, aiming for significant cost savings and enhanced productivity. CEO Enrique Lores stated that this move is essential for maintaining the company's competitive edge in a rapidly evolving market.

The restructuring initiative is projected to generate $1 billion in gross run-rate savings over three years, though it will incur approximately $650 million in restructuring charges. HP aims to accelerate product development, improve customer satisfaction, and boost overall productivity through AI adoption and enablement. The company’s strategy includes workforce reductions, platform simplification, and program consolidation across various departments.

CEO Enrique Lores emphasized the necessity of these changes, stating, "It's something we have to do to make sure the company stays competitive." He further elaborated on the company's approach to AI, explaining, "What we have learned is that we need to start from redesigning the process, and once we know how the process could be redone using AI, using agentic AI, it can really have a very significant impact." The job cuts will primarily affect teams involved in product development, internal operations, and customer support.

The announcement follows HP's fiscal fourth-quarter results, which saw a 4.2% rise in sales to $14.6 billion, with AI-enabled personal computers accounting for over 30% of shipments. Despite this growth, the company is grappling with rising memory chip costs and has issued a lower-than-expected profit outlook for the coming year. HP's shares experienced a decline following the news, reflecting investor concerns about the financial implications.

This move by HP aligns with a broader trend within the technology sector, where major companies like Amazon, Microsoft, and Meta have also announced workforce reductions, often citing AI integration and efficiency gains. As one social media user noted, > "its not gonna stop, but accelerating! ... Dario Amodei was right, Hinton was right: We need to discuss a post labor society now!" HP plans to continue investing in areas that will further integrate AI into its product offerings, signaling a long-term commitment to AI-driven transformation across its business.