HP Bets on AI, Slashes Workforce by 6,000

HP Inc. is implementing a major workforce reduction, planning to cut between 4,000 and 6,000 jobs globally by fiscal year 2028. This strategic move is designed to streamline operations and enhance efficiency through the adoption of artificial intelligence in product development, customer satisfaction, and overall productivity. CEO Enrique Lores highlighted that these changes will impact teams focused on product development, internal operations, and customer support. The company anticipates this initiative will generate substantial financial benefits, projecting $1 billion in gross run rate savings over a three-year period.

Further emphasizing the company's forward-looking strategy, HP is increasingly leveraging AI, with AI-enabled PCs already comprising over 30% of its shipments in the last quarter. However, the company is also navigating external market pressures, such as a global surge in memory chip prices due to high demand from data centers. This could potentially increase costs and impact profits for consumer electronics manufacturers like HP, Dell, and Acer. HP expects to feel the impact of these rising prices in the latter half of fiscal 2026.