HP to Cut 6,000 Jobs as AI Reshapes Global Operations
HP Inc. has announced plans to lay off up to 6,000 employees worldwide by 2028 as part of an aggressive artificial intelligence–driven overhaul. The company aims to automate operations, accelerate product development, and enhance customer support, with CEO Enrique Lores stating the initiative will generate around $1 billion in savings over three years. The job cuts will primarily affect teams across product development, internal operations, and customer support.
This marks an expansion of earlier layoffs in February, when HP cut between 1,000 and 2,000 roles under its ongoing restructuring strategy. The company is also navigating rising component costs tied to surging global demand for AI infrastructure. Analysts from Morgan Stanley warned that increasing DRAM and NAND memory prices could further pressure profits for PC makers, including HP. Lores acknowledged these challenges, noting that the company expects higher costs in the second half of fiscal 2026 despite having sufficient inventory for the first half.
Alongside the restructuring news, HP delivered mixed financial signals. The tech giant forecasted an adjusted profit per share between $2.90 and $3.20 for fiscal 2026, falling short of Wall Street’s estimate of $3.33, and issued a cautious Q1 profit outlook. However, HP outperformed expectations in Q4, posting $14.64 billion in revenue compared to the projected $14.48 billion.
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