HP to Lay Off Up to 6,000 Employees by 2028 as Part of AI-Driven Restructuring

Technology company HP Inc. has announced that it will lay off between 4,000 and 6,000 employees worldwide by the 2028 fiscal year as part of efforts to streamline operations and accelerate the adoption of artificial intelligence technologies, according to Reuters.

The company says its primary goals are to speed up product development through the use of AI, increase customer satisfaction, and boost overall productivity. Following the announcement, shares of the California-based company fell 5.5% in extended trading.

HP CEO Enrique Lores stated that the layoffs will affect product development, internal operations, and customer support departments. He added that the initiative is expected to save the company around $1 billion over three years. Earlier in February, HP had already laid off 1,000 to 2,000 employees as part of a previously declared restructuring plan.

In the fourth quarter, more than 30% of the company’s total computer shipments were AI-enabled PCs, indicating rising demand. However, Morgan Stanley warned that the global price increase of memory chips may raise costs for manufacturers like HP, Dell, and Acer. Prices for DRAM and NAND memory have gone up due to large tech companies expanding AI infrastructure investments, intensifying competition in the server market.

Lores said the impact of rising costs will become more visible in the second half of the 2026 fiscal year. The company currently has adequate memory inventory for the first half. To control costs, HP is evaluating lower-cost suppliers, reducing memory configurations, and implementing necessary price adjustments.

HP expects adjusted earnings per share to be between $2.90 and $3.20 in fiscal year 2026, below market consensus. The company also said its expected revenue for the first quarter will fall short of analysts’ forecasts.

DBTech/BMT/OR