HP to Reduce Workforce by Up to 6,000 Amid AI Integration
Technology company HP announced Tuesday a plan to eliminate between 4,000 and 6,000 positions by the end of 2028, directly linking the job cuts to its strategy of adopting artificial intelligence (AI). The company projects these reductions will generate approximately $1 billion in gross savings by the close of its 2028 fiscal year. HP is among the first major corporations to publicly connect a large-scale layoff plan with the implementation of AI technologies.
With a current workforce of around 58,000 employees, the planned cuts could impact over 10% of the company’s staff. HP stated the restructuring is intended to improve customer satisfaction, accelerate product innovation, and boost overall productivity through the integration of AI.
While aiming for $1 billion in savings over three years, HP anticipates incurring $650 million in restructuring costs, including $250 million during the 2026 fiscal year, which begins in November 2025.
HP was formed in 2015 following a split from the original Hewlett-Packard, founded in 1939. The division saw personal computer and printer operations consolidated under the HP banner,while infrastructure,software,and business services were placed within HPE.However, HP’s revenue has only grown by 7% over the last decade, according to reports from Le Monde.
The declaration, combined with the release of 2026 financial objectives that fell short of investor expectations, led to a 6% drop in HP’s stock price in after-hours trading on the New York Stock Exchange.
