HP layoffs: US-based tech company HP has announced a major restructuring plan, under which it will lay off 6,000 employees globally by fiscal year 2028. This move is part of the company’s strategy to improve and accelerate operations by adopting AI systems.
HP layoffs: US-based tech company HP has announced a major restructuring plan, under which it will lay off 6,000 employees globally by fiscal year 2028. This move is part of the company’s strategy to improve and accelerate operations by adopting AI systems. It’s worth noting that Apple also previously announced large-scale job cuts.
According to CEO Enrique Lores, these layoffs are necessary to ensure HP remains competitive in the changing technological environment, as the entire tech industry rapidly moves towards AI-based operations.
What does the company say ?
According to HP, AI will enable faster product development, improve sales, customer service, and manufacturing, and increase work speed. According to HP CEO Enrique Lores, this shift means the company will save approximately $1 billion over the next three years by adopting AI. However, this will directly impact thousands of employees whose jobs will now be lost to AI and automation.
Already done layoffs
HP had already laid off 1,000 to 2,000 employees in February of this year. Now, as part of its new restructuring plan, the company is preparing to cut jobs by another 6,000 employees. This time, the biggest impact is expected to be on product development, internal operations, and customer support departments. However, employee anxiety has increased because, due to the increasing use of AI, many old roles and responsibilities are now being handled by automated systems.
The company said there is high demand for AI-enabled PCs. Nearly 30% of HP’s total PCs shipped in the fourth quarter were AI PCs. But this growing demand is also driving up the prices of memory chips. Demand for AI systems in data centers is increasing, leading to a steady rise in the prices of DRAM and NAND chips. This is putting pressure on the profits of companies like HP, Dell, and Acer.
HP says the real impact of rising chip prices will be felt in the second half of 2026. For now, the company has built up enough stock for the first six months, so there won’t be any immediate problems. However, after that, the company may face rising costs, which is already a concern.
October quarter revenue $14.64 billion
HP’s October quarter revenue was $14.64 billion. According to data compiled by LSEG, HP expects FY 2026 adjusted profit per share to be between $2.90 and $3.20. This is below analysts’ average estimate of $3.33. This is why HP shares fell. The company expects first-quarter adjusted profit per share to be between 73 cents and 81 cents, below the midpoint estimate of 79 cents.
What did the experts say?
Experts say these changes in the technology sector are the beginning of a new, better future. Today, companies are using AI and automation to reduce costs and improve operations. However, this new technology is having a greater impact on employees.
HP’s layoffs are not just an internal restructuring plan of the company, but it is part of a larger global trend where companies are reducing human labor and becoming more dependent on technology, especially AI.
