HP announces up to 6000 job cuts in AI-driven restructure

Cuts make up approximately 10% of global workforce

HP is cutting up to 6,000 jobs by 2028 to fund its AI transformation, targeting $1 billion in annual savings. The announcement comes amid rising memory costs and follows a pattern of recurring restructuring at the tech giant.

HP has announced the elimination of between 4,000 and 6,000 positions globally by the end of fiscal year 2028. This amounts to approximately 10% of its workforce.

The announcement, made by President and CEO Enrique Lores during Tuesday’s earnings call is underpinned by a need to “to drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement.”

Lores framed the workforce reduction as essential to HP's transformation strategy. The company expects the restructuring to generate at least $1 billion in annualised savings by FY28. The cuts will hit teams across product development, internal operations, customer support, and various administrative functions.

The company emphasised that reductions would vary by country based on local requirements and consultations with employee representatives. As of December, HP employed approximately 58,000 people globally.

The announcement arrives alongside mixed financial results. HP reported annual revenue of $55.3 billion, up 3.2% year-over-year, with fourth quarter revenue reaching $14.6 billion, marking the company's sixth consecutive quarter of growth.

However, shares fell 6% in extended trading following weaker-than-expected guidance for fiscal year 2026, which the company attributed to current US trade regulations and escalating memory component costs.

Demand for AI PCs has continued to increase, reaching over 30% of HP’s shipments in the fourth quarter ending October 31st. However, the global memory chip price surge which is being driven mainly by rising demand for datacentres could push up costs and pressure profits at HP and also Dell and Acer, analysts at Morgan Stanely warned recently.

“Memory costs are currently 15 to 18 percent of the cost of a typical PC,” Lores said. “While an increase was expected, its rate has accelerated in the last few weeks.”

The company has been piloting AI implementations for two years, focusing on process redesign and what Lores described as "agentic AI" to drive efficiency gains.

The latest round of job cuts follows an announcement earlier this year of 1000 to 2000 additional cuts and is eerily similar to an announcement made at almost the same time in 2022.

The cuts also reflect broader industry trends, with more than 114,000 technology sector jobs eliminated across 237 companies in 2025 alone, according to Layoffs.FYI. Amazon, Google, Microsoft, and Meta have all implemented workforce reductions whilst redirecting resources toward AI spending.