Technology manufacturer HP has set in motion a workforce reduction program that will eliminate between 4,000 and 6,000 positions globally by the end of October 2028. The cuts affect approximately 11% of the company’s 56,000-person workforce and reflect HP’s strategic commitment to integrating artificial intelligence across its operations to accelerate innovation and improve efficiency.
The job eliminations will primarily impact product development teams, internal operations staff, and customer support personnel. HP expects to incur $650 million in restructuring expenses while positioning the company to achieve $1 billion in annual savings by 2028. These reductions follow previous layoffs of 1,000 to 2,000 employees implemented in February, indicating sustained organizational transformation.
HP’s revenue performance exceeded market expectations, with fourth-quarter sales reaching $14.6 billion. The company has successfully captured growing demand for AI-enabled computers, which accounted for more than 30% of shipments in the quarter concluding October 31. This market segment continues expanding as consumers and businesses increasingly adopt AI-integrated technology solutions.
However, profitability concerns have emerged in HP’s forward guidance. The company forecasts adjusted earnings per share between $2.90 and $3.20 for the upcoming year, substantially below analyst expectations of $3.33. Rising memory chip costs driven by datacenter demand have significantly impacted production expenses, with memory components now representing 15-18% of typical PC costs. Trade tariffs add additional financial pressure.
Investors responded unfavorably, driving HP shares down 6% after the announcement. The company’s strategy mirrors broader industry movement toward AI-driven operations as organizations deploy automation technologies to enhance competitiveness and reduce costs, fundamentally reshaping traditional employment models across the technology sector.
AI Adoption at HP Comes With Heavy Price: 6,000 Jobs Eliminated
