HP is preparing for one of the largest restructuring efforts in its recent history. The company announced during its Q4 earnings call that it plans to eliminate 4,000 to 6,000 jobs by the end of fiscal year 2028, a move directly tied to its long-term artificial intelligence (AI) strategy.
According to CEO Enrique Lores, this “company-wide initiative” is designed to drive customer satisfaction, product innovation, and productivity by embedding AI deeper across HP’s operations. The layoffs are expected to generate nearly $1 billion in savings by 2028.
Why HP Is Cutting Jobs: AI as the Core Driver
In its statement, HP describes the restructuring as part of a broader transformation focused on operational efficiency, digital modernization, and portfolio optimization. This includes:
- Workforce reductions
- Platform simplification
- Consolidation of internal programs
- New productivity measures powered by AI
The roles most affected will be in product development, internal operations, and customer support, areas where automation and AI-driven systems can take over routine or repetitive tasks.
HP says these measures will not only lower costs but also support long-term efficiency and competitiveness.
AI Transformation Strategy to Be Revealed in April
CEO Enrique Lores emphasized that AI is “transforming HP,” and committed to sharing the full AI roadmap at HP’s Investor Day on April 23. This likely includes:
- New AI-enabled PC and printer capabilities
- Automation across the supply chain and service operations
- AI-augmented productivity tools for enterprise customers
- Restructuring of internal workflows using generative AI
Given HP’s large footprint in consumer and enterprise hardware, the shift signals how traditional tech firms are repositioning themselves for an AI-first future.
Layoffs Are Part of a Larger Pattern at HP
This is not HP’s first major workforce reduction:
- 4,000–6,000 jobs cut in 2022
- 9,000 jobs cut in 2019
With a reported 58,000 employees as of October 2024, the newly announced cuts represent a 7–10% reduction in staff.
Financially, HP ended the fiscal year with mixed performance:
- PC business: $10.4 billion revenue (+8% YoY)
- Printer business: $4.3 billion revenue (–4% YoY)
This contrast highlights where HP may concentrate future AI investments: strengthening its PC ecosystem while reshaping or automating parts of its printer division.
The Bigger Trend: AI Reshapes the Tech Workforce
HP’s announcement adds to a growing wave of AI-era restructurings across the tech sector. Over the past year:
Intel plans to cut 15% of its workforce
- Microsoft cut 9,000 jobs
- Amazon eliminated 14,000 roles
- Verizon reduced headcount by over 13,000
While each company cites different operational reasons, the common thread is clear: AI is enabling automation at a scale that is fundamentally reshaping corporate structures.
For many companies, AI isn’t just a tool, it’s becoming the foundation of how they design workflows, support customers, and deliver products.
What This Means for Tech Professionals
The next three years will likely see:
- Greater demand for AI-literate talent, even in non-technical roles
- Increased automation in customer support and operations
- A shift toward hybrid human–AI product teams
- Pressure on hardware companies to innovate beyond traditional devices
AI becomes integral to business strategy, so tech workers, both inside and outside HP, may need to reskill or adapt to stay competitive.
