- 4,000 to 6,000 jobs will be cut under HP’s latest cost-cutting move
- HP hopes AI will plug the gaps – AI PCs have already proven themselves
- Full-year revenue grew just 3.2%, shares are still down compared with last year
HP has announced it will cut 4,000-6,000 jobs as part of an ongoing cost-cutting initiative, largely driven by AI productivity gains.
Company CEO Enrique Lores confirmed the workforce reduction as part of the company’s recent Q4 earnings, acknowledging the firm’s ‘future-ready’ program that it launched in 2022, as part of HP’s ‘fiscal 2026 plan’.
Despite already realizing more than $1.4 billion in savings from the scheme, Lores said further reductions would be needed against the backdrop of a 3.2% full-year rise in revenue and a slightly better 4.2% rise in quarterly revenue.
HP continues to cut staff
HP has already sent 2,000 workers packing in 2025 (per layoffs.fyi), with these latest plans to reduce global headcount even further set to play out between now and 2028.
“The company estimates that it will incur approximately $650 million in labor and non-labor costs related to restructuring and other charges, with approximately $250 million in fiscal 2026,” HP confirmed.
Product development, customer service and operational processes will be among the roles most likely to be affected, with AI stepping in to fill gaps left by departed workers.
HP also noted AI PC use within the company has boosted team productivity by 16%, and confirmed it would be, “investing in AI-enabled initiatives to accelerate product innovation, improve customer satisfaction, and boost productivity.”
More broadly, HP is also worried about the rising cost of memory, which now accounts for 15-18% of a typical PC’s cost.
A decline in printing, particularly among consumers, has also led to poor performance. Printing net revenue was down 4% year-over-year.
Company shares are largely unaffected by the announcement, but last month’s fluctuations continue. Shares are down 20% over the past 12 months, but after hitting rock bottom over the summer, the past six months have seen some resurgence.
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