HP to Slash Thousands of Jobs Amid AI Pivot
November 27, 2025, 3:31 pm
Location: United Kingdom, England, City of London
Employees: 10001+
Total raised: $2.9B
HP plans to cut 4,000 to 6,000 jobs by 2028. The company is shifting its focus to AI. Restructuring aims for $1 billion in savings.
PALO ALTO, CA – HP Inc. is set to eliminate up to 6,000 jobs by the end of fiscal year 2028. This move is part of a company-wide restructuring. The goal? To aggressively adopt and enable artificial intelligence. The changes will impact various teams globally.
The job cuts are a key component of HP's "fiscal 2026 plan." The plan emphasizes AI integration. HP believes AI will boost productivity. It also aims to accelerate product innovation. Customer interactions should improve, too.
HP expects significant cost savings. The company projects annual gross savings of $1 billion by 2028. However, the restructuring will cost $650 million. About $250 million of that will be spent in fiscal 2026.
CEO Enrique Lores says the layoffs will affect multiple departments. Product development, internal operations, and customer support will all be impacted. HP plans to leverage AI across these areas.
This isn't HP's first round of job cuts. Earlier this year, the company laid off 1,000 to 2,000 employees.
HP's recent financial results present a mixed picture. Fiscal 2025 net revenue reached $55.3 billion. This is a 3.2% increase from the previous year. Fourth-quarter revenue hit $14.6 billion. This exceeded analyst expectations.
Lores highlighted the company's revenue growth. He emphasized the focus on "disciplined execution." This will translate plans into long-term value.
However, profit forecasts are below some analyst estimates. HP projects fiscal 2026 adjusted profit per share between $2.90 and $3.20. The average analyst estimate is $3.33.
HP's aggressive AI push coincides with rising costs. Memory chip prices are surging due to high demand for AI infrastructure. This market dynamic will impact consumer electronics makers. HP expects to feel the effects in the second half of fiscal 2026.
HP is taking steps to mitigate these costs. This includes qualifying lower-cost suppliers and reducing memory configurations.
Even before this new initiative, AI was already present in HP's products. AI-enabled PCs accounted for over 30% of shipments in the last quarter.
HP's restructuring mirrors a broader trend in the tech industry. Companies are increasingly turning to AI. They are also reducing their human workforce. IBM and other major vendors are trading headcount for automation.
Analysts are closely watching HP's AI strategy. The company's success hinges on effective AI implementation. Cost management will be crucial. Market conditions could also impact HP's performance.
HP is betting big on AI. The company believes AI will transform its operations and products. The job cuts reflect this strategic shift. The long-term impact remains to be seen. HP must navigate market challenges and execute its AI strategy effectively. The company needs to manage costs and maintain revenue growth. This restructuring will define HP's future in the age of AI. The move underscores the growing importance of AI. The tech industry will continue to evolve rapidly.
HP aims to streamline operations. Further investment in AI is also a goal. This applies to both internal operations and products. The company’s fourth-quarter revenue exceeded estimations. Expected fiscal profit per share is lower than analyst estimates. The rising prices of AI-enabled chips will affect the firm. These chips power AI-enabled PCs. HP is adapting to the demands of the AI era.
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HP Announces Major Layoffs as It Embraces AI
PALO ALTO, CA – HP Inc. is set to eliminate up to 6,000 jobs by the end of fiscal year 2028. This move is part of a company-wide restructuring. The goal? To aggressively adopt and enable artificial intelligence. The changes will impact various teams globally.
AI-Driven Restructuring
The job cuts are a key component of HP's "fiscal 2026 plan." The plan emphasizes AI integration. HP believes AI will boost productivity. It also aims to accelerate product innovation. Customer interactions should improve, too.
HP expects significant cost savings. The company projects annual gross savings of $1 billion by 2028. However, the restructuring will cost $650 million. About $250 million of that will be spent in fiscal 2026.
Impacted Areas
CEO Enrique Lores says the layoffs will affect multiple departments. Product development, internal operations, and customer support will all be impacted. HP plans to leverage AI across these areas.
This isn't HP's first round of job cuts. Earlier this year, the company laid off 1,000 to 2,000 employees.
Financial Performance
HP's recent financial results present a mixed picture. Fiscal 2025 net revenue reached $55.3 billion. This is a 3.2% increase from the previous year. Fourth-quarter revenue hit $14.6 billion. This exceeded analyst expectations.
Lores highlighted the company's revenue growth. He emphasized the focus on "disciplined execution." This will translate plans into long-term value.
However, profit forecasts are below some analyst estimates. HP projects fiscal 2026 adjusted profit per share between $2.90 and $3.20. The average analyst estimate is $3.33.
AI Investment vs. Cost Headwinds
HP's aggressive AI push coincides with rising costs. Memory chip prices are surging due to high demand for AI infrastructure. This market dynamic will impact consumer electronics makers. HP expects to feel the effects in the second half of fiscal 2026.
HP is taking steps to mitigate these costs. This includes qualifying lower-cost suppliers and reducing memory configurations.
Even before this new initiative, AI was already present in HP's products. AI-enabled PCs accounted for over 30% of shipments in the last quarter.
Industry Trend
HP's restructuring mirrors a broader trend in the tech industry. Companies are increasingly turning to AI. They are also reducing their human workforce. IBM and other major vendors are trading headcount for automation.
Analyst Perspective
Analysts are closely watching HP's AI strategy. The company's success hinges on effective AI implementation. Cost management will be crucial. Market conditions could also impact HP's performance.
Future Outlook
HP is betting big on AI. The company believes AI will transform its operations and products. The job cuts reflect this strategic shift. The long-term impact remains to be seen. HP must navigate market challenges and execute its AI strategy effectively. The company needs to manage costs and maintain revenue growth. This restructuring will define HP's future in the age of AI. The move underscores the growing importance of AI. The tech industry will continue to evolve rapidly.
HP's AI-Focused Strategy
HP aims to streamline operations. Further investment in AI is also a goal. This applies to both internal operations and products. The company’s fourth-quarter revenue exceeded estimations. Expected fiscal profit per share is lower than analyst estimates. The rising prices of AI-enabled chips will affect the firm. These chips power AI-enabled PCs. HP is adapting to the demands of the AI era.
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