The key path
- HP plans to lay off 4,000 to 6,000 employees by the end of its fiscal year 2028.
- The move is part of a broader push to incorporate AI into company operations.
- According to HP’s earnings presentation, the company’s strategy is to reduce costs through “manpower reductions and adoption of artificial intelligence.”
HP plans to cut 4,000 to 6,000 jobs by the end of its 2028 fiscal year as part of a broader push to implement AI in its operations. HPC CEO Enrique Lloris said the cuts will affect teams working on product development, customer support and internal operations.
According to Stock Analysis, the computer and printer maker employed 58,000 people as of October 2024, which means the layoffs could represent close to 10% of its workforce.
HP estimates that this will save about $1 billion by 2028 as it implements job cuts. The company says it will shoulder $650 million in restructuring costs, with about $250 million to be spent in fiscal 2026.
HP shares fell nearly 6 percent in extended trading on Tuesday after the news. The stock was down 2.5 percent on Wednesday.
Related: Apple held rare ceilings focused on a specific team
Loris said the cuts are not just about cutting costs, but about “disciplined execution.”
“As we accelerate innovation in AI-powered devices to drive productivity, security and flexibility for our customers, our focus for FY26 is on disciplined execution,” Loris said in a statement. “We are committed to driving measurable results—ensuring that our plans translate into long-term value for our shareholders.”
The redemption announcement came alongside HP’s fiscal 2025 financial results. Annual revenue rose 3.2 percent year-over-year to $55.3 billion. Fourth-quarter net income was $14.6 billion, up 4.2 percent and marking HP’s sixth straight quarter of revenue growth.
HP laid off 1,000 to 2,000 workers as part of a separate restructuring plan in February.
According to an earnings presentation seen by Fox Business, HP’s strategy is to drive “artificial intelligence adoption and efficiency” while cutting costs in part through “workforce reductions.”
Related: AI and cost-cutting led to the worst October holiday in 22 years
Reuters reported that during a media briefing call this week, Loris said that HP began deploying AI pilots two years ago to drive productivity and customer service.
“What we’ve learned is that we need to start by redesigning that process, and once we figure out how to redesign that process using AI, using agentic AI, that can have a really significant impact,” Loris said on the call.
Agentic AI is able to make decisions, execute plans and take action with little to no human intervention. Companies are already using it to get work done faster. Services firm Capita announced earlier this year that it has used agentic AI on more than 200 recruitment tasks to speed up hiring.
A McKinsey report released Tuesday noted that AI could already automate 57 percent of all American work hours, but that represents the automation of tasks, not the elimination of jobs. According to the researchers, AI can handle repetitive tasks, but human skills such as judgment and emotional intelligence will remain critical to the future.
The key path
- HP plans to lay off 4,000 to 6,000 employees by the end of its fiscal year 2028.
- The move is part of a broader push to incorporate AI into company operations.
- According to HP’s earnings presentation, the company’s strategy is to reduce costs through “manpower reductions and adoption of artificial intelligence.”
HP plans to cut 4,000 to 6,000 jobs by the end of its 2028 fiscal year as part of a broader push to implement AI in its operations. HPC CEO Enrique Lloris said the cuts will affect teams working on product development, customer support and internal operations.
According to Stock Analysis, the computer and printer maker employed 58,000 people as of October 2024, which means the layoffs could represent close to 10% of its workforce.
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