HP Announces Around 6000 Global Workforce Reductions to Pivot Toward AI-driven Operations
The announced layoffs will primarily affect teams in product development, internal operations, and customer support.
HP Inc. announced a sweeping global restructuring plan today, revealing it will cut between 4,000 and 6,000 jobs by the end of fiscal year 2028 as part of a broader push to integrate artificial intelligence across its business.
The announced layoffs will primarily affect teams in product development, internal operations, and customer support.
According to the company, the restructuring is expected to generate about $1 billion in gross run-rate savings within three years.
HP’s CEO, Enrique Lores, emphasised that the job cuts are part of a strategy to “accelerate product innovation, improve customer satisfaction, and boost productivity” by embedding AI into core processes.
The company aims to streamline operations via platform simplification, consolidation of programs, and adoption of automation.
The decision comes as HP sees rising demand for AI-enabled PCs — which accounted for over 30% of its shipments in the fourth quarter — and as memory-chip costs surge due to growing AI infrastructure demand.
However, the growing expenses may squeeze profit margins, particularly in the second half of fiscal 2026, prompting HP to consider cost-mitigation measures like sourcing cheaper suppliers and reducing memory configurations.
Despite a strong fiscal 2025 — marked by revenue growth — the restructure underscores the broader trend of tech firms realigning resources toward AI.
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