HP has announced plans to eliminate between 4,000 and 6,000 positions globally by October 2028, representing a significant portion of its 56,000-person workforce. The computer and printer manufacturer attributes the restructuring to its increasing adoption of artificial intelligence technologies designed to accelerate product innovation and streamline operations.
Chief Executive Enrique Lores explained that the California-based company sees substantial opportunities to integrate AI throughout its operations. The technology will be embedded across product development, internal processes, and customer support functions. This strategic shift is expected to generate approximately $1 billion in annual savings by 2028, though the implementation will require an initial investment of around $650 million.
The announcement coincided with HP’s disclosure of a profit outlook for the upcoming year that fell short of market expectations. The company projects adjusted net earnings between $2.90 and $3.20 per share, below the $3.33 analysts had anticipated. This conservative forecast reflects anticipated increased costs related to trade tariffs and rising memory chip prices.
Despite these challenges, HP reported fourth-quarter revenues of $14.6 billion, exceeding expectations. The company noted strong demand for AI-enabled personal computers, which accounted for over 30% of its shipments in the quarter ending October 31. However, the workforce reduction news triggered a 6% drop in HP shares following the announcement.
This latest round of cuts follows an earlier restructuring in February that eliminated 1,000 to 2,000 positions. The affected departments will include teams focused on product development, internal operations, and customer support. HP joins a growing list of major corporations citing AI implementation as a driver for workforce reductions, reflecting broader industry trends toward automation and technological transformation.