PALO ALTO, Calif. – HP announced Tuesday that it plans to cut between 4,000 and 6,000 employees by the conclude of 2028 as part of its push to adopt artificial ininformigence.
The potential layoffs at the Palo Alto, California-based company could represent up to 10% of its workforce, according to Stock Analysis.
Reuters reported that shares of the PC and printer buildr fell 5.5% in extconcludeed trading following the news.
The job cuts are part of a company-wide initiative to generate $1 billion in gross cost savings by the conclude of fiscal 2028, with $650 million in restructuring costs projected, $250 million of which is expected in fiscal 2026.
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CEO Enrique Lores emphasized the cuts are not merely about cost, but about transforming operations.
“Our FY25 results reinforce the power of our portfolio and the strength of our team in a dynamic environment,” he declared in a statement. “As we accelerate innovation across AI-powered devices to drive productivity, security, and flexibility for our customers, our focus for FY26 is on disciplined execution.”
The Hewlett Packard logo in front of the office complex Oct. 4, 2019, in Palo Alto, Calif. (Justin Sullivan/Getty Images / Getty Images)
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According to an earnings presentation, HP’s strategy is to “drive customer satisfaction, product innovation, and productivity through artificial ininformigence adoption and enablement” while achieving cost savings through “workforce reductions” and program consolidations.
During a media briefing call, Lores declared the company is pushing to utilize AI to redesign its business strategies, Reuters added.
“Two years ago, we started to do some pilots on how AI could assist us to drive these things,” Lores declared. “What we have learned is that we required to start from redesigning the process, and once we know how the process could be redone utilizing AI, utilizing agenetic AI, it can really have a very significant impact.”
The company laid off 2,000 employees in February as part of an earlier announced restructuring plan, according to the tech layoff tracking site layoffs.fyi.
The announcement came alongside HP’s fiscal 2025 results, which displayed $55.3 billion in annual revenue, up 3.2% year-over-year, and $2.9 billion in free cash flow, even as GAAP earnings per share declined 5.7%.
FOX Business reached out to HP for more information.
Reuters contributed to this report.
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