HP to reduce human workforce while shifting to AI-driven operations

TL;DR: HP said it plans to cut between 4,000 and 6,000 jobs worldwide by fiscal 2028 as part of its plan to simplify operations and expand its use of artificial intelligence.

HP said it plans to cut between 4,000 and 6,000 jobs worldwide by fiscal 2028 as part of its plan to simplify operations and expand its use of artificial intelligence.
The company announced that the job cuts will affect teams in product development, internal operations, and customer support.
According to HP CEO Enrique Lores, the restructuring is expected to save about $1 billion over the next three years.
Lores said the company is preparing by qualifying lower-cost suppliers, lowering memory configurations, and adjusting product prices.
For fiscal 2026, HP expects adjusted earnings per share of $2.90 to $3.20, which is below analyst forecasts.

HP said it plans to cut between 4,000 and 6,000 jobs worldwide by fiscal 2028 as part of its plan to simplify operations and expand its use of artificial intelligence. The company announced that the job cuts will affect teams in product development, internal operations, and customer support.

According to HP CEO Enrique Lores, the restructuring is expected to save about $1 billion over the next three years. This move follows an earlier layoff of 1,000 to 2,000 employees in February under a previously announced restructuring plan.

HP said it is increasing its focus on AI as demand for AI-enabled PCs continues to grow. These devices made up more than 30% of the company’s shipments in the fourth quarter ending October 31.

However, rising memory chip prices could affect the company’s costs in the coming years. Analysts from Morgan Stanley warned that stronger demand from data centers has pushed up prices for DRAM and NAND chips, which may put pressure on companies like HP, Dell, and Acer.

HP expects the higher chip prices to impact the business in the second half of fiscal 2026. Lores said the company is preparing by qualifying lower-cost suppliers, lowering memory configurations, and adjusting product prices.

For fiscal 2026, HP expects adjusted earnings per share of $2.90 to $3.20, which is below analyst forecasts.

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