HP Job Elimination Plan Affects 6,000 in Global AI Restructuring

Technology giant HP has announced plans to reduce its global workforce by 4,000 to 6,000 employees by the end of October 2028 as part of its artificial intelligence integration strategy. The California-based company employs approximately 56,000 people worldwide, and the cuts reflect CEO Enrique Lores’s vision for embedding AI throughout operations to boost innovation and efficiency.
Product development areas, internal operations, and customer support functions will bear the primary burden of the planned reductions. HP anticipates spending $650 million on restructuring while positioning the company to deliver $1 billion in annual savings by 2028. These layoffs follow previous reductions of 1,000 to 2,000 employees implemented in February, demonstrating sustained organizational transformation efforts.
Financial results reveal impressive revenue performance, with HP exceeding analyst expectations by posting $14.6 billion in fourth-quarter sales. The company has achieved significant market penetration with AI-capable personal computers, which represented more than 30% of shipments during the quarter ending October 31. Consumer and enterprise demand for AI-integrated computing solutions continues accelerating rapidly.
Despite revenue achievements, HP’s profit outlook concerned market analysts. The company forecasts adjusted net earnings between $2.90 and $3.20 per share for the upcoming year, significantly below the consensus estimate of $3.33. Escalating memory chip costs driven by intense datacenter demand have substantially increased production expenses, with memory now representing 15-18% of typical PC costs. Trade tariffs add further pressure on profitability.
Investors responded unfavorably to the news, driving HP shares down 6%. The company’s transformation exemplifies widespread industry movement toward AI-driven operations as businesses deploy automation technologies to streamline processes and reduce operational expenses, fundamentally reshaping employment across the technology sector.