HP makes it official, to cut thousands of jobs due to AI; says: Two years ago, we started ...

HP is the latest company to join the list of growing tech layoffs. HP has officially announced its plans to cut between 4,000 to 6,000 jobs by the end of 2028. As reported by Business Insider, the company made this announcement during the earnings presentation and said that the decision is part of organisational restructuring and is also tied to the adoption of artificial intelligence. This latest move of HP underscores how AI is reshaping corporate strategies and workforce across the tech industry.

During the earnings call, HP CEO Enrique Lores explained the rationale behind this decision. “Two years ago, we started to do some pilots on how AI could help us to drive these things. 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 agentic AI, it can really have a very significant impact.”




Lores further added that HP ‘finished a strong 2025’ and the company further plans to grow faster than the market in 2026. He also added that HP now plans to embed AI in ‘everything they do’.

HP’s layoff strategy

HP claims that this move of restructuring or layoffs will help the company to save around $1 billion by 2028. The company also expects to incur $650 million in related costs, with about $250 million hitting in fiscal 2026. The plan of the company includes workforce reductions, platform simplification, program consolidation and productivity measures. All these changes will be driven by AI integration.

HP’s financial outlook

HP expects to beat revenue expectations in Q4. However, its non-GAAP diluted EPS forecast for 2026 ($2.90–$3.20) fell short of Bloomberg analysts’ projection of $3.32. Shares of the company also dropped more than 5% in after-hours trading following the announcement and are down over 25% year-to-date.

The job cuts announced by HP are majorly driven by the AI layoffs trend. Business Insider previously reported that companies including Amazon and Workday have announced significant job reductions tied to AI advancements, as automation reshapes roles once considered secure.