6,000 HP Workers to Lose Jobs as Company Pursues AI Savings

Technology giant HP has announced plans to eliminate between 4,000 and 6,000 positions globally by the end of October 2028 as part of its artificial intelligence integration strategy. The workforce reduction affects approximately 11% of the company’s 56,000 employees, with leadership describing AI adoption as critical for accelerating innovation and enhancing operational efficiency.
Product development teams, internal operations staff, and customer support departments will experience the most significant impact from the planned cuts. HP anticipates incurring $650 million in restructuring costs while positioning the company to realize $1 billion in annual savings by 2028. These reductions follow earlier layoffs of 1,000 to 2,000 employees in February, indicating ongoing organizational transformation.
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 accounted for more than 30% of shipments during the quarter ending October 31. Demand for AI-integrated computing solutions continues accelerating across markets.
However, profitability projections concerned investors. HP forecasts adjusted earnings per share between $2.90 and $3.20 for the upcoming year, significantly below the consensus estimate of $3.33. Escalating memory chip costs driven by datacenter demand for AI infrastructure have substantially increased production expenses, with memory now representing 15-18% of typical PC costs. Trade tariffs add additional pressure on profit margins.
Market response proved negative, with HP shares declining 6% after the announcement. The company’s strategy mirrors broader industry trends as organizations increasingly deploy AI and automation technologies to streamline operations and reduce costs, despite the significant human impact of workforce displacement.