HP to Lay Off Thousands Globally as Part of $1 Billion Cost-Saving and AI-Driven Strategy
HP has announced significant global job cuts over the coming years as part of a strategic move to accelerate its adoption of Artificial Intelligence (AI) and streamline operations. The tech giant revealed on Tuesday, November 25, that it plans to reduce its global headcount by between 4,000 and 6,000 employees by 2028, aiming to enhance AI productivity and optimize customer satisfaction.
CEO Enrique Lores confirmed during a media briefing that teams involved in product development, internal operations, and customer support would be affected by these major layoffs. Lores stated, “We expect this initiative will create $1 billion in gross run rate savings over three years.”
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He added that the company is taking a prudent approach to its guidance for the second half of the fiscal year while simultaneously implementing aggressive actions such as qualifying lower-cost suppliers, reducing memory configurations, and adjusting pricing. This follows an earlier round of layoffs in February, where an additional 1,000 to 2,000 employees were let go.
The announcement comes as demand for HP’s AI-enabled PCs continues to surge externally, reaching over 30% of the company’s shipments by the end of the fourth quarter on October 31. Despite the layoffs, the company projects fiscal 2026 adjusted profit per share (HPQ) to be between $2.90 and $3.20. Furthermore, HP’s revenue for the fourth quarter stood at $14.64 billion, slightly exceeding analysts’ estimates of $14.48 billion, indicating continued strong performance in certain areas amidst its restructuring efforts.
