HP Inc said on Tuesday it plans to cut 4,000–6,000 jobs globally by fiscal 2028 to streamline operations and expand AI integration across product development, internal operations, and customer support. CEO Enrique Lores said the initiative is expected to generate $1 billion in savings over three years. The company previously reduced 1,000–2,000 positions earlier in 2025 as part of ongoing restructuring.
Rising demand for AI-enabled PCs, which accounted for more than 30% of HP shipments in the fourth quarter, is reshaping workflows, echoing broader trends identified in studies such as MIT’s Iceberg Index, which found AI could replace almost 12% of the U.S. labor market. Similarly, Amazon has already begun targeted layoffs in engineering teams as AI adoption shifts staffing needs, and research in the U.K. suggests automation threatens millions of low-skilled roles.
HP faces additional cost pressures from surging memory chip prices, fueled by high demand in data centers. The company plans to mitigate the impact by qualifying lower-cost suppliers, adjusting configurations, and taking price actions. Fiscal 2026 adjusted EPS is expected at $2.90–$3.20, below analyst estimates, while Q4 revenue reached $14.64 billion.
