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HP announced Tuesday that it plans to cut between 4,000 and 6,000 employees by the end of 2028 as part of its push to adopt artificial intelligence.
According to Stock Analysis, the potential layoffs at the Palo Alto, California-based company could represent up to 10% of its workforce.
Reuters reported that shares of the PC and printer maker fell 5.5% in extended trading following the news.
The job cuts are part of a company-wide initiative to generate $1 billion in gross cost savings by the end of fiscal 2028, with $650 million in restructuring costs expected, of which $250 million is expected in fiscal 2026.
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Employees representing HP products at a conference. (iStock / iStock)
CEO Enrique Lores emphasized that the cuts are not just about costs, but also about transforming operations.
“Our FY25 results reinforce the strength of our portfolio and the strength of our team in a dynamic environment,” he said in a statement. “As we accelerate innovation in AI-powered devices to increase productivity, security and flexibility for our customers, our focus for FY26 is on disciplined execution.”
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The Hewlett Packard logo in front of the office complex on October 4, 2019 in Palo Alto, California. (Justin Sullivan/Getty Images/Getty Images)
According to an earnings presentation, HP’s strategy is to “drive customer satisfaction, product innovation and productivity through the adoption and enablement of artificial intelligence” while achieving cost savings through “headcount reductions” and program consolidations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HPQ | HP INC. | 24.29 | -0.11 |
-0.45% |
At a media briefing, Lores said the company is pushing to use AI to redesign its business strategies, Reuters added.
“Two years ago we started some pilots on how AI could help us drive these things,” Lores said. “What we’ve learned is that we have to start by redesigning the process, and once we figure out how to redo the process using AI, using agenetic AI, it can really have a very significant impact.”
In this photo illustration, the Hewlett-Packard logo appears on a smartphone with an artificial intelligence chip and a symbol in the background. (Budrul Chukrut/SOPA Images/LightRocket/Getty Images)
The company laid off 2,000 employees in February as part of a previously announced restructuring plan, according to tech layoffs tracking site layoffs.fyi.
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The announcement came along with HP’s fiscal 2025 results, which showed annual revenue of $55.3 billion, up 3.2% year over year, and free cash flow of $2.9 billion, even as GAAP earnings per share fell 5.7%.
Reuters contributed to this report.
