HP puts a number on how many jobs it’ll cut due to AI
HP has recently announced a significant reduction in its workforce, planning to cut between 4,000 and 6,000 jobs by the end of fiscal 2028 as part of its strategic shift towards artificial intelligence (AI) initiatives. This decision, revealed in the company’s earnings report, is expected to save HP approximately $1 billion, although the restructuring will incur costs of about $650 million, with $250 million of that expense anticipated in fiscal 2026. The move reflects a broader trend within the corporate landscape, where companies are increasingly leveraging AI to enhance efficiency and drive innovation, often at the expense of traditional job roles.
During an earnings call, HP’s CEO Enrique Lores emphasized the company’s commitment to integrating AI into its operations to improve customer satisfaction, boost product innovation, and enhance productivity. Lores noted that the journey towards AI adoption began with pilot programs two years ago, leading to insights that have informed the redesign of processes to harness the power of AI effectively. While HP’s revenue for the fourth quarter exceeded expectations, the company’s stock fell over 5% in after-hours trading, and it has seen a decline of more than 25% year-to-date. Analysts have expressed concern regarding HP’s earnings projections, with the company estimating a non-GAAP diluted net EPS between $2.90 to $3.20 for 2026, which falls short of the anticipated $3.32.
This announcement is indicative of a larger trend where AI-driven layoffs are affecting white-collar jobs across various industries, with notable examples including Amazon and Workday, which have also implemented significant job cuts in response to advancements in AI technology. As HP embarks on this transformative journey, the implications for its workforce and the broader market remain to be seen, highlighting the ongoing tension between technological advancement and employment stability in the corporate sector.
HP announced that it will be reducing its corporate head count due to AI-driven initiatives.
illustration by Cheng Xin/Getty Images
HP announced that it will be reducing its corporate head count due to AI-driven initiatives.
The PC and printer company will cut between 4,000 and 6,000 jobs by the end of fiscal 2028.
The company estimates it will save approximately $1 billion.
HP on Tuesday
said it will cut between 4,000 and 6,000 jobs by the end of 2028 as it goes all-in on AI.
The PC and printer company announced the cuts in its earnings report,
estimating it will save approximately $1 billion by 2028 as it implements the changes. The company estimates it will incur roughly $650 million in costs related to the restructuring, with about $250 million of the expense falling in fiscal 2026.
HP’s strategy is to “drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement,” and achieve cost savings through “workforce reductions, platform simplification, programs consolidation, and productivity measures,” according to its earnings presentation.
“Two years ago, we started to do some pilots on how AI could help us to drive these things,” HP CEO Enrique Lores said during the earnings call. “What we have learned is that we need to start from redesigning the process, and once we know how the process could be redone using AI, using agenetic AI, it can really have a very significant impact.”
He added later in the call that the company “finished 2025 strong, growing profit from the first half to the second.”
“In 2026, we intend to grow faster than the market,” he added. “We have a significant opportunity to embed AI in everything we do and transform the company.”
The company beat revenue expectations in Q4. However, Bloomberg analysts forecast that the company would post an EPS of $3.32 in 2026, while HP estimated its non-GAAP diluted net EPS to be in the range of $2.90 to $3.20, which is below analysts’ expectations.
HP’s stock was down more than 5% in after-hours trading at the time of publication, and is down more than 25% year-to-date.
Business Insider previously reported that the era of
AI-driven layoffs
is hitting white-collar industries particularly hard, with companies such as Amazon and Workday announcing significant
job cuts
related to advancements in artificial intelligence.
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