- Between 4,000 and 6,000 jobs will be eliminated thanks to HP’s latest cost-cutting measure
- HP hopes AI will fill the gap: AI-enabled PCs have already proven themselves
- Full-year revenue grew just 3.2%, stock still down year-over-year
HP has announced that it will eliminate between 4,000 and 6,000 jobs as part of an ongoing cost-cutting initiative, driven largely by productivity gains from AI.
The company’s CEO, Enrique Lores, confirmed the workforce reduction as part of the company’s recent fourth-quarter earnings, acknowledging the company’s “future-ready” program that launched in 2022, as part of HP’s “fiscal 2026 plan.”
Despite having realized more than $1.4 billion in savings from the plan, Lores said further reductions would be needed in the context of a 3.2% increase in full-year revenue and a slightly better 4.2% increase in quarterly revenue.
HP continues cutting staff
HP has already sent 2,000 workers packing in 2025 (according to dismissals.fyi), and these latest plans to further reduce the global workforce will take place between now and 2028.
“The company estimates that it will incur approximately $650 million in labor and non-labor costs related to the 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 likely to be affected, with AI stepping in to fill the gaps left by departed workers.
HP also noted that the use of AI-enabled PCs within the company has increased team productivity by 16% and confirmed that it would “invest in AI-enabled initiatives to accelerate product innovation, improve customer satisfaction and drive productivity.”
More generally, HP is also concerned about the rising cost of memory, which now represents between 15 and 18% of the cost of a typical PC.
A decline in printing, particularly among consumers, has also led to poor performance. Net printing revenue decreased 4% year over year.
The company’s stock is largely unaffected by the announcement, but last month’s fluctuations continue. The stock is down 20% over the past 12 months, but after hitting bottom over the summer, the past six months have seen some resurgence.
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