HP will be cutting 4,000 to 6,000 jobs as part of its plans to drive growth, innovation, and customer satisfaction using AI. The layoffs were announced during last week’s Q4 earnings call and will be implemented by the end of the fiscal year of 2028.
“It’s something we have to do to make sure the company stays competitive,” CEO Enrique Lores said. He added that layoffs will primarily impact those in product development, internal operations, and customer support roles.
HP expects the job cuts to save nearly $1 billion by the end of 2028. In the same period, it will incur around $650 million in restructuring and labor costs, with about $250 million set to be spent in fiscal 2026 itself.
The company appears to be sticking to a three-year cycle for major layoffs. In 2019, it reduced about 9,000 jobs. In 2022, it announced plans to eliminate 4,000 to 6,000 jobs over the next three years, and it has made a similar announcement again this year.
As of October 2024, HP’s headcount reportedly stood at 58,000, meaning the recently announced layoffs could reduce the workforce by about 7-10%. Notably, the company’s PC business closed the fiscal year with a net revenue of $10.4 billion, an 8% year-on-year growth, while its printer business brought in $4.3 billion, down 4% year-on-year.
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HP now joins a long list of tech giants announcing layoffs due to AI-driven restructuring or cost cuts. Intel said it would be reducing 15% of its workforce in June; Microsoft cut 9,000 jobs in July; Amazon cut 14,000 jobs in October; and Verizon just cut 13,000 jobs last month.
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Jibin is a tech news writer based out of Ahmedabad, India. Previously, he served as the editor of iGeeksBlog and is a self-proclaimed tech enthusiast who loves breaking down complex information for a broader audience.
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