HP to cut 4,000–6,000 jobs by 2028 as part of AI-Driven restructuring
Source: Saiyp | Date: 2025-11-27 10:40:00
HP Inc. announced plans to lay off 4,000 to 6,000 employees by the end of 2028 as part of its aggressive shift toward artificial intelligence. The move, outlined in its “2026 Financial Plan,” aims to boost productivity, accelerate AI-powered product innovation, and enhance customer engagement—signaling HP’s belief that AI will reshape its workforce.
CEO Enrique Lores said cuts will span product development, internal operations, and customer support. The restructuring is expected to generate 650 million to implement—$250 million of which will be spent in fiscal 2026.
Financially, HP reported 14.6 billion, beating estimates. However, its 2026 earnings forecast of 2.90–3.20 per share falls short of the market’s $3.33 expectation.
Beyond AI, HP faces rising costs from soaring DRAM and NAND memory prices, which it expects to impact margins in the second half of fiscal 2026. In response, the company plans to reduce memory configurations and source from more cost-effective suppliers.
AI integration is already bearing fruit: over 30% of HP’s PC shipments in Q4 (ended October 31) were AI-enabled devices, underscoring its strategic pivot amid a rapidly evolving tech landscape.