HP to Cut Up to 6,000 Jobs by 2028 as Company Accelerates Shift to AI
HP Inc. has announced plans to eliminate between 4,000 and 6,000 jobs worldwide by fiscal 2028 as part of a broad restructuring strategy aimed at reducing costs and deepening its adoption of artificial intelligence across core operations.
Chief Executive Enrique Lores said the reductions will affect teams involved in product development, internal operations and customer support. The push, he explained during a media briefing, is designed to streamline workflows and incorporate AI-driven tools that speed up product design, enhance customer experience and boost overall efficiency.
According to Lores, the initiative is expected to generate about $1 billion in annualised savings over the next three years. The company previously cut 1,000 to 2,000 jobs in February as part of an earlier restructuring phase.
HP’s shift comes as demand for AI-enabled personal computers continues to strengthen, accounting for more than 30% of its shipments in the quarter ending October 31. However, rising memory chip prices—fuelled by heavy AI investment from major tech companies and increasing competition in the server market—are raising concerns about cost pressures for manufacturers like HP.
Market analysts at Morgan Stanley have warned that the surge in demand from data centres is pushing up prices for DRAM and NAND memory, two key components in PCs and servers. Lores said HP expects to feel the financial impact of the price hikes from the second half of fiscal 2026, although the company has sufficient inventory to cushion the first half of the year.
“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,” Lores said.
HP forecast fiscal 2026 adjusted earnings of $2.90 to $3.20 per share – below analysts’ expectations of $3.33. Its guidance for the first quarter also came in softer than anticipated, with projected adjusted earnings of 73 to 81 cents per share.
Despite the cautious outlook, HP posted stronger-than-expected revenue in the fourth quarter, reporting $14.64 billion against market estimates of $14.48 billion.
