Key Takeaways HP is planning to lay off between 4,000 and 6,000 employees by the end of its fiscal year 2028.
The move is part of a broader push to incorporate AI into the company’s operations.
According to an HP earnings presentation, the company’s strategy is to drive “artificial intelligence adoption and enablement” while reducing costs through “workforce reductions.”
HP plans to cut between 4,000 and 6,000 jobs by the end of its fiscal year 2028 as part of a broader push to implement AI in its operations. HP CEO Enrique Lores said the cuts will affect teams working on product development, customer support and internal operations.
The computer and printer maker employed 58,000 people as of October 2024, according to Stock Analysis, which means the layoffs could represent around 10% of its workforce.
HP estimates that it will save approximately $1 billion by 2028 as it puts the job cuts into effect. The company says it will shoulder $650 million in restructuring costs, with about $250 million of the expense taking place in fiscal year 2026.
Shares of HP fell nearly 6% in extended trading on Tuesday following the news. The stock was down over 2.5% on Wednesday.
Related: Apple Conducted Rare Layoffs Focused on One Specific Team
Lores said that the cuts are not just about reducing costs, but about “disciplined execution.”
“As we accelerate innovation across AI-powered devices to drive productivity, security and flexibility for our customers, our focus for FY26 is on disciplined execution,” Lores said in a statement. “We are committed to driving measurable results — ensuring that our plans translate into long-term value for our shareholders.”
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