HP to lay off up to 6,000 employees to focus on AI and automation
HP, a manufacturer of printers and PCs, has announced that it will cut between 4,000 and 6,000 employees in an effort to reduce costs as it makes large-scale investments in AI.
HP Inc. Reports Fiscal 2025 Full Year and Fourth Quarter Results | HP® Official Site
HP to lay off up to 6,000 workers as it goes all-in on AI and automation | TechSpot
In its 2025 financial results report, HP announced an initiative called 'Plan 2026,' which aims to improve customer satisfaction, product innovation, and productivity through the adoption and utilization of AI. HP said that this initiative will result in a reduction of approximately 4,000 to 6,000 employees worldwide by the end of fiscal year 2028, and is expected to result in cost savings of $1 billion (approximately 156 billion yen).
'Two years ago, we launched a pilot project to assess the potential of AI. What we learned was that we needed to start with process redesign. If we can figure out how to reinvent processes with AI, particularly agent-based AI, we can have a huge impact,' said CEO Enrique Lores. 'HP aims to grow at a pace above the market by 2026 and sees a huge opportunity to transform the company by embedding AI into everything we do.'
HP expects to incur personnel and restructuring-related costs of $250 million in fiscal 2026 alone. HP's total revenue for fiscal 2025 is expected to be $55.3 billion, up 3.2% from the previous year.
TechSpot predicts that the global memory shortage will affect HP, causing the company to raise the prices of its devices. However, they also predict that sales of HP devices will increase as more users switch to Windows 11 after Microsoft ends support for Windows 10.
HP's stock price fell more than 5% in after-hours trading following the earnings report, and is down more than 25% by 2025.
HP isn't the only company replacing people with AI: In 2025 alone, Indeed, Microsoft, Meta, IBM, Amazon, and many others are cutting jobs.
Amazon announces large-scale layoffs, laying off 14,000 employees, halting development of large-scale MMORPG in gaming division - GIGAZINE
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