6,000 HP Workers Face Layoffs as AI Reshapes Tech Employment

Technology manufacturer HP has unveiled a workforce reduction program eliminating 4,000 to 6,000 employees globally by the end of October 2028. The California-based company employs approximately 56,000 people, and the cuts form part of its artificial intelligence integration strategy designed to boost product innovation and operational efficiency.
The job eliminations will concentrate on product development teams, internal operations staff, and customer support departments. The restructuring requires an initial investment of $650 million but promises to generate $1 billion in annual savings once completed in 2028. This marks the company’s second substantial workforce reduction this year, following the elimination of 1,000 to 2,000 positions in February.
Financial results reveal impressive revenue generation, with HP exceeding analyst expectations by posting $14.6 billion in fourth-quarter sales. The company has achieved considerable success with AI-capable personal computers, which accounted for more than 30% of shipments during the quarter ending October 31. Demand for AI-integrated computing solutions continues growing across consumer and enterprise segments.
Despite strong revenue performance, HP’s earnings outlook disappointed market analysts. The company projects adjusted net earnings between $2.90 and $3.20 per share for the coming year, significantly below the consensus estimate of $3.33. Escalating memory chip costs driven by intense datacenter demand have substantially increased production expenses, with memory now representing 15-18% of typical PC costs. Trade tariffs further complicate the financial picture.
Market response proved sharply negative, with HP shares declining 6% after the announcement. The company’s transformation mirrors widespread industry movement toward AI-driven operations as businesses deploy automation technologies to streamline processes and reduce costs, fundamentally reshaping employment across the technology sector.