HP Plans to Cut 6,000 Jobs Amid AI-Driven Restructuring

HP, the prominent computer and printer manufacturer, has unveiled an ambitious restructuring strategy that will eliminate approximately 10 percent of its global workforce. The company plans to reduce its headcount by between 4,000 and 6,000 employees as it shifts focus towards adopting artificial intelligence (AI) to enhance efficiency and innovation.

This decision, outlined in HP’s latest earnings report, mirrors a growing trend within the technology sector. Firms such as Google, Microsoft, and Amazon have recently announced significant workforce reductions, citing the need to redirect resources towards AI initiatives. As these companies invest heavily in AI development, they aim to streamline operations and reduce costs across various functions.

HP’s restructuring is expected to generate around $1 billion (approximately €864.2 million) in annual savings by the end of fiscal 2028. The company is responding to shifting demand patterns in both the personal computer and printing markets. According to HP CEO Enrique Lores, the company intends to raise prices on its computers and collaborate with new suppliers to mitigate the increased costs associated with AI computing.

In the most recent quarter, HP reported a profit of $795 million (about €687 million), a decrease from $906 million (approximately €782 million) in the same period last year. Despite this decline in profit, HP’s revenue increased by 4.2 percent, reaching $14.64 billion (around €12 billion), surpassing analyst expectations. This growth was largely attributed to strong sales in the PC segment, which helped offset a downturn in printer sales.

Industry analysts indicate that AI automation is having a significant impact on roles related to customer support, content moderation, data entry, and certain programming tasks. As HP and other tech giants embrace AI, the landscape of employment in the sector is likely to continue evolving, with job roles being redefined or eliminated in favor of technology-driven solutions.

Overall, HP’s strategic pivot towards AI not only aims to enhance its operational efficiency but also reflects the broader shifts occurring within the technology industry. As the company navigates these changes, its ability to balance innovation with workforce management will be crucial in the coming years.