HP has announced major job cuts in the upcoming years to boost its AI (artificial intelligence) adoption.
According to CNN, the tech giant on Tuesday, November 25, revealed that it is planning to reduce global headcount by between 4,000 and 6,000 employees by 2028 to increase its AI productivity and streamline operations as per consumer satisfaction.
CEO Enrique Lores, during a media briefing call, revealed that the team working on product development, internal operations and customer support will be affected during this major layoff.
Lores said, “We expect this initiative will create $1 billion in gross run rate savings over three years. We are taking a prudent approach to our guide for the second half, while at the same time implementing aggressive actions like qualifying lower-cost suppliers, reducing memory configurations and taking price actions.”
In the previously announced recruiting plan, HP laid off an additional 1,000 to 2,000 employees in February.
It is worth noting that by the end of the fourth quarter on October 31, the demands of the company’s AI-enabled PCs had continued to ramp externally, reaching over 30% of HP’s shipments.
The company expects fiscal 2026 adjusted profit per share (HPQ) to be between $2.90 and $3.20, while the revenue for the fourth quarter was $14.64 billion, a little higher than the estimates of $14.48 billion.
