HP Inc said Tuesday (local time) that it plans to trim 4,000 to 6,000 jobs worldwide by the end of FY28, Reuters reported. The restructuring aims to streamline operations as the company doubles down on artificial intelligence to accelerate product development, sharpen customer experience, and drive productivity gains.
According to chief executive officer Enrique Lores during a media briefing, the teams likely to be affected are those working in product development, internal operations, and customer support. Earlier in the year, HP terminated between 1,000 and 2,000 positions as part of a restructuring initiative it had disclosed earlier.
“We expect this initiative will create $1 billion in gross run rate savings over three years,” Lores said, adding: “It’s something we have to do to make sure the company stays competitive.”
According to the company’s statement on Tuesday, the planned cuts will incur approximately $650 million in restructuring expenses, with around $250 million allocated to fiscal year 2026, which commenced on November 1. Bloomberg reported that HP employed about 58,000 people as of October 2024.
Nearly three years earlier, the PC manufacturer introduced a separate cost-reduction initiative targeting the elimination of 4,000 to 6,000 positions. At that time, the workforce numbered 61,000, and the program delivered gross savings of $2.2 billion.
Demand for AI-enabled PCs now accounts for over 30% of HP’s Q4 shipments. Rising global memory chip prices—driven by strong data-centre demand—could increase costs and pressure margins for HP, Dell, and Acer. HP says its current inventory should help cushion the impact in the first half of FY28, even as it continues to push AI-driven products.
HP has been reducing expenses and relocating production for nearly all North American products to sites beyond China in an effort to avoid tariffs. Currently, with customers upgrading outdated PCs and embracing new AI capabilities, the company is encountering increasing memory costs.
In the fiscal fourth quarter ending October 31, HP reported sales of $14.6 billion, up 4.2%, with adjusted earnings of 93 cents per share, slightly above analyst expectations of 92 cents. PC revenue rose 8%, driven by Windows 11 upgrades and growing AI-PC demand, while printer sales declined 4% to $4.27 billion, in line with forecasts.
Apple has become one of the latest firms to reduce its workforce amid a significant restructuring of its sales department. The tech giant has laid off dozens of employees worldwide, following an earlier round of job cuts in Australia and New Zealand that saw close to 20 positions eliminated.