HP Set to Cut Thousands of Jobs by 2028 in a Major Shift towards AI
Technology giant HP Inc. has unveiled plans to cut between 4,000 and 6,000 jobs globally by fiscal 2028. This aggressive restructuring strategy is aimed at bolstering the company’s adoption of artificial intelligence (AI). The layoffs, which account for approximately 7-10% of the company’s workforce, are projected to generate $1 billion in cost savings over a three-year period.
According to CEO Enrique Lores, the cuts will affect a wide range of teams, from product development and internal operations to customer support. This is part of HP’s strategic pivot towards AI-enabled technologies.
In the fourth quarter, the company reported that 30% of its shipments were AI-enabled PCs. Moreover, revenue from these products saw a year-over-year doubling. “We expect this initiative will create $1 billion in gross run rate savings over three years,” Lores stated during an earnings call.
The restructuring comes at a time when HP is grappling with rising memory chip prices. This surge in prices is driven by increased demand from AI development, which the company anticipates will affect costs in the second half of fiscal 2026.
HP is not alone in this trend. It joins a growing list of tech companies conducting major layoffs while simultaneously investing heavily in AI capabilities.
The announcement follows HP’s previous round of layoffs in February 2025, during which 1,000 to 2,000 employees were let go.
Source: CNN Business