HP announced Tuesday that it plans to cut between 4,000 and 6,000 employees by the end of 2028 as part of its push to adopt artificial intelligence.
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 maker fell 5.5% in extended trading following the news.
The job cuts are part of a company-wide initiative to generate $1 billion in gross cost savings by the end 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 said 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.”
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According to an earnings presentation, HP’s strategy is to “drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement” while achieving cost savings through “workforce reductions” and program consolidations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HP | HELMERICH & PAYNE INC. | 27.57 | +0.82 | +3.06% |
During a media briefing call, Lores said the company is pushing to use AI to redesign its business strategies, Reuters added.
“Two years ago, we started to do some pilots on how AI could help us to drive these things,” Lores said. “What we have learned is that we need to start from redesigning the process, and once we know how the process could be redone using AI, using 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 showed $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.
