HP announced that it will cut between 4,000 and 6,000 jobs globally by October 2028 as the company accelerates its shift toward AI-driven product development and operations.
The cuts come alongside a lower-than-expected profit outlook, with CEO Enrique Lores emphasizing that embedding AI across HP will help improve productivity, speed up innovation, and enhance customer satisfaction.
The workforce reduction is expected to save the company around $1 billion annually; however, HP estimates that the restructuring will cost roughly $650 million to execute.
The job cuts will affect teams across product development, internal operations, and customer support, areas where AI is playing a growing role.
This announcement follows earlier layoffs in February and aligns HP with a growing list of companies citing AI adoption as a key factor in reducing staff. At the same time, analysts warn that AI-driven efficiencies could impact millions of jobs globally.
Reports from the National Foundation for Educational Research and McKinsey estimate that up to 3 million low-skilled jobs in the UK and nearly 40% of roles in the U.S. could be automated by emerging AI systems in the coming years.
Beyond workforce implications, HP is also facing rising memory chip prices as Big Tech ramps up its investments in AI infrastructure.
Memory currently accounts for as much as 18% of a typical PC’s cost, and HP says rising DRAM and NAND prices are putting pressure on its margins.
Still, the company reported better-than-expected quarterly revenue of $14.6 billion, with AI-enabled PCs now accounting for more than 30% of shipments.
Despite this growth, the company’s earnings forecast for next year fell short of expectations, contributing to a 6% drop in HP shares following the announcement.
Key Takeaways:
- HP will cut 4,000–6,000 jobs by 2028 as it increases its reliance on AI across operations.
- Rising memory chip costs and a weaker profit forecast put pressure on the company’s near-term outlook.
- AI-enabled PCs now account for over 30% of HP shipments, but investor reaction has remained negative.
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