HP Announces Job Cuts of 6,000 by 2028: Boosting AI Initiatives for a Stronger Future | CNN Business

HP Inc. recently announced plans to cut between 4,000 and 6,000 jobs worldwide by 2028. This decision aims to streamline its operations and embrace artificial intelligence (AI) to enhance product development, customer satisfaction, and overall productivity.

During a media briefing, CEO Enrique Lores mentioned that the job cuts would affect teams involved in product development, internal operations, and customer support. He believes this initiative will lead to $1 billion in savings over three years.

Earlier this year, HP laid off an additional 1,000 to 2,000 employees as part of a restructuring effort. The push for AI within the tech industry has been significant, with AI-enabled PCs making up over 30% of HP’s shipments in the last quarter.

However, the rise in global demand for AI technologies is causing challenges. Analysts from Morgan Stanley warn that a surge in memory chip prices, driven by data center needs, may put pressure on profits for companies like HP, Dell, and Acer. Increased competition in the server market has also pushed chip prices up, creating a ripple effect across the tech landscape.

Lores expects the impact of rising chip costs to be felt by the second half of fiscal 2026. He noted that while HP has enough inventory for the first half, they are preparing for higher expenses. “We’re being careful about our guidance for the second half while finding ways to cut costs,” he said.

Projected adjusted profits for fiscal 2026 are between $2.90 and $3.20 per share, falling short of analysts’ average estimate of $3.33. For the first quarter, HP anticipates adjusted profits ranging from 73 to 81 cents per share, also below expected estimates.

Despite the challenges, HP reported a revenue of $14.64 billion for the fourth quarter, outperforming estimates of $14.48 billion. This shows that while the company faces uncertainty, it is still able to generate substantial income.

As the tech industry continues to evolve rapidly, companies like HP are navigating these changes with mixed results. The increasing focus on AI and the pressures of component costs will shape the future landscape for both HP and its competitors.



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