HP Cuts 6,000 Jobs Due to AI

HP Inc., the global computing and printing giant, has initiated a significant strategic restructuring that will see it eliminate between 4,000 and 6,000 jobs globally by the end of fiscal year 2028. This aggressive move is not merely a reaction to market pressures; it is a decisive bet on artificial intelligence (AI) and automation to reshape its workforce and operations, with the explicit goal of achieving an estimated $1 billion in gross run rate savings over the next three years.

This announcement sends a potent signal across the tech industry, placing HP squarely in the growing narrative of AI job displacement and corporate digital transformation.

The AI Mandate

HP CEO Enrique Lores framed the workforce reduction as essential to future-proof the company and drive productivity. The job cuts will primarily impact teams in:

Product Development
Internal Operations
Customer Support

These are sectors where AI implementation offers the highest potential for process optimization and efficiency gains. By deploying advanced AI tools, including agentic AI, HP aims to:

Accelerate Product Innovation: Automating parts of the design and testing cycles.
Enhance Customer Satisfaction: Replacing or assisting human agents with sophisticated chatbots and automated support systems.
Boost Productivity: Streamlining back-office and internal administrative functions.

The estimated $1 billion in savings by 2028 is the tangible result of this large-scale organizational restructuring driven by technological adoption. HP expects to incur around $650 million in related restructuring charges, highlighting the significant investment required for this foundational shift.

The Two Sides of the AI Coin

HP's strategy is a perfect illustration of the paradox of AI in business:

Internal Threat: AI is a disruptive technology that replaces roles in internal operations and support, leading to layoffs.
Market Opportunity: AI is the key feature driving the next generation of hardware (AI PCs), offering a new revenue stream and boosting external sales.

While the job cuts reflect the negative side of AI domain for the workforce, the company views it as a necessary step for sustainable business growth and long-term competitiveness in a market that is increasingly valuing efficiency over headcount.

The move by HP, alongside similar actions by other major tech players like Amazon and Microsoft, solidifies the narrative that technology companies are actively reducing their workforce where automation is feasible, using the resulting savings to fund further AI investment and maintain a competitive edge.