US Tech & AI

HP plans to save millions by laying off thousands, ramping up AI use

In a significant restructuring move, HP Inc. has announced plans to lay off between 4,000 to 6,000 employees as part of its strategy to enhance artificial intelligence (AI) capabilities within the company. This decision, revealed during an earnings call by CEO Enrique Lores, is aimed at achieving a substantial cost reduction of $1 billion in annualized gross run rate by the end of fiscal 2028. The layoffs are expected to predominantly affect areas such as product development, internal operations, and customer support. This shift reflects a growing trend among technology companies to leverage AI as a means of streamlining operations and improving efficiency, ultimately leading to a more competitive edge in the market.

HP’s pivot towards AI is not merely a cost-cutting measure; it is framed as a transformative strategy to accelerate product innovation, enhance customer satisfaction, and boost overall productivity. Lores emphasized that by integrating AI technologies, HP aims to create smarter systems that can respond more effectively to customer needs and market demands. For example, AI-driven analytics could enable HP to better understand consumer preferences, leading to the development of more tailored products and services. The company’s commitment to AI aligns with broader industry trends, as many tech giants are increasingly investing in AI to drive growth and innovation. As HP moves forward with these layoffs and technological advancements, the impact on its workforce and the potential for improved operational efficiencies will be closely monitored by industry analysts and stakeholders alike.

As the company navigates this transition, it remains to be seen how these changes will affect its long-term vision and market position. The layoffs, while significant, underscore the ongoing evolution of the tech landscape, where traditional roles are being redefined in favor of more automated and AI-driven processes. HP’s focus on AI could position it favorably in a competitive market, but the human cost of such a transition raises important questions about workforce adaptation and the future of jobs in technology.