HP Inc. (NYSE: HPQ) announced it plans to reduce its global workforce by between 4,000 and 6,000 jobs by the end of fiscal 2028. This move is part of a broader strategy to integrate artificial intelligence into its operations, aiming to accelerate product development, enhance customer satisfaction, and improve productivity. The company expects these job reductions to generate approximately $1 billion in annual savings while incurring about $650 million in restructuring costs, with a significant portion of these expenses hitting in fiscal 2026.
CEO Enrique Lores explained that HP’s AI adoption began with pilot projects two years ago, which revealed that redesigning business processes with AI technologies, particularly generative AI, could significantly impact operations. The layoffs primarily affect teams involved in product innovation, operational processes, and customer service. Despite these cuts, HP finished 2025 with strong profit performance and aims to grow faster than the market in 2026 while embedding AI across its business activities.
The trend of companies using AI to reduce workforce sizes is not unique to HP. Across the corporate world, numerous firms are turning to AI-driven automation to cut costs and boost efficiency. Major companies like Amazon, Microsoft, and Google have also announced workforce reductions tied to AI advancements. These changes often affect roles in customer support, content moderation, data entry, and certain programming tasks, where AI tools can automate repetitive or routine work. Industry analysts observe this shift as part of a broad transformation in how businesses operate, balancing human resource reductions with technological investments.
HP’s announcement aligns with a sweeping change in the global job market where AI adoption is accelerating workforce shifts. Analysts warn that memory chip price spikes due to rising data center demands could add cost pressure on consumer electronics companies, making AI-driven cost savings even more crucial. HP is adapting by combining AI integration with supply adjustments, including working with new suppliers and raising product prices to offset higher costs linked to AI computing demands.
The changes at HP Inc. mirror broader socioeconomic dynamics sparked by AI’s rapid emergence. While AI offers tangible gains in innovation and operational efficiency, its adoption is prompting significant restructuring in corporate workforces. This period marks a turning point where companies balance technological progress with challenges posed by job displacements across various industries.
