HP too Cut Thousands of Jobs, Invest Heavily in AI
PALO ALTO, CA - November 26, 2025 – HP Inc. announced plans to reduce its workforce by thousands over the next fiscal year, aiming to generate notable cost savings as it accelerates its adoption of artificial intelligence.The cuts will primarily affect product advancement, internal operations, and customer support, according to HP CEO Enrique Lores.
The company expects thes structural cost savings – driven by operational efficiency, digital conversion, and portfolio optimization - to be lasting in the long term. HP did not specify the exact number of positions to be eliminated, but indicated the reductions are a key component of its strategy to leverage AI for product innovation, improved customer satisfaction, and increased productivity.
“We will accelerate product innovation,improve customer satisfaction,and boost productivity,” Lores said during an earnings call on Tuesday.
HP’s move reflects a broader trend in the tech industry, where companies are increasingly turning to AI and together reducing their reliance on human labor. Salesforce recently laid off 4,000 customer support employees, with CEO Marc Benioff stating that AI meant “I need less heads.” Amazon has also faced scrutiny from US senators alleging it blamed generative AI for laying off “tens of thousands” of employees while simultaneously hiring over 10,000 foreign H-1B workers. Other tech giants, including Intuit, klarna, Duolingo, and Meta, have also announced significant layoffs and a shift towards AI-focused roles in recent months.
