HP to slash up to 6,000 jobs as AI becomes central to strategy

HP Inc is preparing to eliminate between 4,000 and 6,000 jobs globally by fiscal 2028 as it restructures its operations and increases the use of artificial intelligence across key functions. The company aims to streamline product development, improve customer satisfaction and strengthen overall productivity through deeper AI integration.

Teams involved in product development, internal operations and customer support are expected to be most affected by the workforce changes. The restructuring is designed to generate an estimated one billion dollars in gross run rate savings over the next three years. Earlier this year, HP also cut an additional 1,000 to 2,000 positions under a previously announced plan.

The company continues to see rising demand for AI-enabled PCs, which accounted for more than 30% of its total shipments in the fourth quarter ended October 31. However, HP is also preparing for cost pressures driven by a global surge in memory chip prices. Increased demand from data centers has pushed up prices of key components such as DRAM and NAND, raising concerns for consumer electronics manufacturers including HP, Dell and Acer.

HP expects the impact of the higher component costs to become more visible in the second half of fiscal 2026, although it has sufficient inventory for the first half. The company is taking steps such as qualifying lower-cost suppliers and adjusting memory configurations to manage the pressure.

For fiscal 2026, HP projects adjusted profit per share below market expectations, and its first-quarter outlook also falls slightly short of analyst estimates. Despite these challenges, fourth-quarter revenue reached 14.64 billion dollars, edging past projections.