HP Announces Major Workforce Reduction Targeting 6,000 Jobs by 2028
HP Inc has revealed plans to cut up to 6,000 jobs globally as part of a comprehensive restructuring strategy aimed at streamlining operations and accelerating artificial intelligence adoption. The technology giant expects these workforce reductions to generate approximately $1 billion in savings over three years.
Key Takeaways
- HP plans to eliminate 4,000-6,000 positions by fiscal year 2028
- Restructuring aims to save $1 billion over three years
- Product development and customer support teams most affected
- Company shifting focus toward AI integration
Restructuring Timeline and Previous Cuts
According to Reuters reporting, this marks HP’s second major workforce reduction this year, following 1,000-2,000 layoffs in February. The multi-year restructuring plan is designed to position the company competitively in the rapidly evolving technology landscape while optimizing operational efficiency.
CEO Enrique Lores on Impact and Strategy
HP CEO Enrique Lores confirmed that teams involved in product development, internal operations, and customer support will bear the brunt of the layoffs. He stated: “We expect this initiative will create $1 billion in gross run rate savings over three years.”
AI Expansion and Memory Chip Costs
The technology sector’s aggressive push into AI infrastructure has driven up costs for essential memory components. Dynamic random access memory (DRAM) and NAND chips are experiencing significant price increases due to intense server market competition.
Financial Outlook and Inventory Management
Lores indicated that HP maintains sufficient inventory to support operations through the first half of the coming year. The company anticipates more noticeable effects, including potential further price adjustments, during the second half of fiscal 2026.
“We are taking a prudent approach to our guide for the second half,” Lores explained, “while at the same time implementing aggressive actions like qualifying lower cost suppliers, reducing memory configurations and taking price actions.”
