The computer manufacturer HP will reduce its global workforce by up to 6,000 employees through October 2028, joining a growing number of technology companies restructuring to accommodate artificial intelligence technologies. The move affects various departments within the approximately 56,000-person organization.
From its California base, HP’s leadership outlined a strategic vision centered on AI integration across business operations. CEO Enrique Lores explained that embedding these technologies into product development, internal processes, and customer support represents a major opportunity for the organization. The company anticipates benefits including accelerated innovation, enhanced customer satisfaction, and improved productivity, with the transformation generating approximately $1 billion in annual savings by 2028.
Implementing this vision will require substantial investment and organizational change. HP estimates the restructuring will cost around $650 million to execute, with impacts felt most significantly in teams handling product development, internal operations, and customer support. This follows an earlier workforce reduction of 1,000 to 2,000 positions in February, indicating a multi-phase transformation process.
The broader context shows AI reshaping employment across multiple industries. Recent announcements from law firms, consulting companies, and financial technology firms all cite AI adoption when explaining workforce reductions. Some organizations report that automation and AI systems are replacing departing staff rather than new employees being hired, potentially signaling long-term structural changes in employment patterns. Research suggests that substantial percentages of work hours across diverse sectors could be automated using currently available technologies.
HP’s financial results demonstrate both strengths and challenges. Fourth-quarter revenues reached $14.6 billion, exceeding expectations, with AI-enabled personal computers comprising over 30% of shipments in the quarter ending October 31. However, the company issued a lower-than-expected profit forecast for the coming year, citing pressures from trade tariffs and sharply rising memory chip costs. These semiconductor components have experienced accelerated price increases due to intense demand from companies building AI infrastructure, creating margin pressure across the PC manufacturing industry. Stock markets reacted to the mixed news with HP shares declining as much as 6%.