Technology giant HP has unveiled plans to eliminate between 4,000 and 6,000 positions globally by late 2028, representing a significant reduction to its current workforce of approximately 56,000 employees. The move comes as the company intensifies its integration of artificial intelligence across its operations.
Company leadership indicated the restructuring will generate approximately $1 billion in annual savings by the target date, though the initiative will require an estimated $650 million in implementation costs. The workforce reduction follows a previous round of cuts earlier this year that affected between 1,000 and 2,000 positions.
In a statement, HP’s chief executive emphasized the strategic shift toward AI implementation, noting the technology’s potential to accelerate product development cycles, enhance customer experience, and improve overall operational efficiency. The changes are expected to impact departments including product development, internal operations, and customer support.
The announcement coincides with growing concerns about AI’s impact on employment across multiple sectors. Recent analyses suggest automation could affect millions of positions in fields ranging from administrative services to legal professions, with some estimates indicating AI could handle more than half of current work hours in certain industries.
HP’s strategic pivot reflects broader industry trends, with numerous technology firms and professional services organizations announcing similar workforce adjustments tied to AI adoption. Several major consulting firms and technology companies have recently scaled back hiring plans or reduced staff counts while citing efficiency gains from artificial intelligence implementation.
Despite reporting stronger-than-anticipated quarterly revenue of $14.6 billion, HP provided a conservative profit outlook for the coming year, falling below analyst expectations. The company attributed the tempered forecast to increased costs from international trade tariffs and rising memory chip prices.
The technology sector faces mounting pressure from escalating memory costs, with industry analysts noting that memory components now constitute 15-18% of typical PC manufacturing expenses. These cost increases, driven by heightened demand from data centers developing advanced AI systems, could potentially impact profitability across the computer manufacturing industry.
Market reaction to the announcement was immediate, with HP’s stock declining as much as 6% following disclosure of the restructuring plan and financial projections.
