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Wednesday, Nov 26, 2025
Outside the box.
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
PC-maker HP says workforce reductions tied to AI strategy will yield around one billion dollars in savings by 2028.
(HP) announced on November 25, 2025 that it plans to reduce its global workforce by between 4,000 and 6,000 jobs by the end of fiscal 2028 as part of a broader shift toward AI-driven operations.
The company’s chief executive, , said the layoffs will affect teams engaged in product development, internal operations, and customer support — reflecting an effort to streamline processes and leverage artificial intelligence to accelerate product development, improve customer satisfaction, and boost productivity.
HP estimates that this restructuring will generate approximately US$1 billion in gross savings over three years.
The plan follows an earlier round of cuts in February 2025, when between 1,000 and 2,000 employees were dismissed under a prior restructuring effort.
The decision comes against a backdrop of growing demand for AI-enabled PCs: in the quarter ending October 31, HP said devices with AI capabilities accounted for over 30 percent of its shipments.
At the same time, the company warned of rising global memory-chip costs — driven by data-centre demand and server-market competition — which may pressure profitability, especially in the second half of fiscal 2026.
To counter this, HP plans cost-management measures including sourcing lower-cost suppliers, reducing high-memory configurations, and adjusting pricing as needed.
Though HP met revenue expectations in the fourth quarter — reporting sales of US$14.64 billion — the company projected adjusted earnings per share between US$2.90 and US$3.20 for fiscal 2026, below analyst expectations.
That adjusted guidance contributed to a drop of more than 5 percent in HP’s share price in after-hours trading.
HP’s announcement reflects a broader trend within the technology sector: as generative AI and automation become more capable, many firms are reevaluating traditional staffing models.
The company said that while these decisions are difficult, they believe AI integration is vital to remaining competitive.
“These are some of the most difficult decisions we need to make, and we are committed to treating our colleagues with care and respect,” Lores said in the earnings call.
The coming months will test whether cost-savings, increased AI-driven efficiency, and renewed product focus can offset the human and organisational cost of this transformation — and whether HP’s bet on AI will deliver the promised gains without sacrificing too much in morale, capacity, or innovation.
The company’s chief executive, , said the layoffs will affect teams engaged in product development, internal operations, and customer support — reflecting an effort to streamline processes and leverage artificial intelligence to accelerate product development, improve customer satisfaction, and boost productivity.
HP estimates that this restructuring will generate approximately US$1 billion in gross savings over three years.
The plan follows an earlier round of cuts in February 2025, when between 1,000 and 2,000 employees were dismissed under a prior restructuring effort.
The decision comes against a backdrop of growing demand for AI-enabled PCs: in the quarter ending October 31, HP said devices with AI capabilities accounted for over 30 percent of its shipments.
At the same time, the company warned of rising global memory-chip costs — driven by data-centre demand and server-market competition — which may pressure profitability, especially in the second half of fiscal 2026.
To counter this, HP plans cost-management measures including sourcing lower-cost suppliers, reducing high-memory configurations, and adjusting pricing as needed.
Though HP met revenue expectations in the fourth quarter — reporting sales of US$14.64 billion — the company projected adjusted earnings per share between US$2.90 and US$3.20 for fiscal 2026, below analyst expectations.
That adjusted guidance contributed to a drop of more than 5 percent in HP’s share price in after-hours trading.
HP’s announcement reflects a broader trend within the technology sector: as generative AI and automation become more capable, many firms are reevaluating traditional staffing models.
The company said that while these decisions are difficult, they believe AI integration is vital to remaining competitive.
“These are some of the most difficult decisions we need to make, and we are committed to treating our colleagues with care and respect,” Lores said in the earnings call.
The coming months will test whether cost-savings, increased AI-driven efficiency, and renewed product focus can offset the human and organisational cost of this transformation — and whether HP’s bet on AI will deliver the promised gains without sacrificing too much in morale, capacity, or innovation.
