HP Planning to Lay Off 4,000 to 6,000 Employees by FY28 Amid Push for AI

HP Inc has outlined a workforce reduction of 4,000–6,000 roles by the end of fiscal 2028, aimed at improving efficiency and supporting AI-led product development, as per news reports.  

The company expects the initiative to generate $1 billion in gross run-rate savings over three years. Restructuring charges tied to the cuts will total about $650 million, including $250 million in fiscal 2026, as per Bloomberg. Earlier this year, HP had already removed 1,000–2,000 roles under an ongoing cost-reduction programme. 

Operational Priorities and Financials 

As per news reports, Chief executive Enrique Lores said the changes are necessary for competitiveness, noting that teams involved in product development, internal operations and customer support will be impacted. HP had around 58,000 employees in October 2024, down from 61,000 when a previous cost-cutting plan targeting 4,000–6,000 jobs delivered $2.2 billion in savings.  

For the period ahead, the company has guided full-year profit of $2.90–$3.20 a share, with earnings of 73–81 cents expected in the quarter ending January. Demand for AI-enabled PCs continued to rise, accounting for over 30% of shipments in the quarter ended 31 October. 

Market Conditions and Broader Sector Layoffs 

4th-quarter revenue increased 4.2% to $14.6 billion, while profit excluding items came in at 93 cents a share. PC revenue grew 8% on Windows 11 upgrades and interest in AI machines, whereas printer revenue declined 4% to $4.27 billion. HP highlighted the impact of rising memory prices, stating it is adding suppliers, adjusting memory configurations and raising prices when required.  

Across the wider technology sector, Apple has cut roles globally, Meta has reduced several hundred jobs in its AI unit and Amazon has eliminated more than 14,000 roles as part of a broader restructuring affecting around 10% of its corporate workforce. 

Read More: Apple Restructures Global Sales Operations, Cuts Roles Despite $140 Billion Revenue Outlook! 

Conclusion 

HP’s latest restructuring move reflects shifting cost pressures and a rapidly changing hardware market shaped by AI adoption. The company continues to balance investment in new technologies with disciplined cost management across its global operations. 

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