HP Cuts Up To 6,000 Jobs As AI Push Accelerates
HP Inc. has announced plans to cut between 4,000 and 6,000 jobs globally by the end of fiscal 2028. The reduction — amounting to nearly 10 percent of its total workforce — will affect divisions including product development, customer support and internal operations.
Company Shifts Strategy Toward AI
The layoffs are part of a wider restructuring strategy that focuses on embedding artificial intelligence across HP’s products and workflows. The company expects the shift to speed up development cycles, improve customer service efficiency and reduce long-term operational costs. HP estimates the restructuring will generate US$1 billion in gross savings over the next three years.
Market Performance And Investor Concerns
In its recent quarterly update, HP reported that AI-enabled PCs now make up more than 30 percent of its global shipments, indicating rising demand for AI-capable devices. However, concerns over higher memory-chip prices and weaker earnings guidance pushed HP’s stock down by around 5.5 percent in after-hours trading following the announcement.
Broader Industry Implications
HP’s move aligns with a larger industry pattern in which major tech companies are cutting jobs while investing heavily in automation and AI solutions. Analysts say this transition is reshaping job roles across the sector, with traditional support and development functions expected to undergo significant changes as AI adoption deepens.
