New Delhi: HP Inc said on Wednesday that it plans to eliminate between 4,000 and 6,000 jobs worldwide by the end of fiscal 2028 as part of a new cost-reduction programme aimed at restructuring operations and expanding the use of artificial intelligence to speed product development and improve customer experience. The announcement, reported by Reuters, follows an earlier round of 1,000 to 2,000 job cuts carried out this year under an existing restructuring plan.
Chief executive Enrique Lores confirmed that the coming reductions would impact teams working in product development, internal operations and customer support. Speaking to reporters, he said the initiative is expected to generate “$1 billion in gross run rate savings over three years,” adding that the move is necessary for the company to remain competitive.
The layoffs will result in about $650 million in restructuring charges, including roughly $250 million during fiscal 2026, which began on November 1. HP reported having approximately 58,000 employees as of October 2024. Almost three years ago, the PC maker launched a separate workforce reduction programme of similar scale, cutting 4,000 to 6,000 roles and saving an estimated $2.2 billion when staff numbers stood at 61,000.
For the current financial year, profit excluding one-time items is projected to be between $2.90 and $3.20 per share, below analysts’ average estimate of $3.32. Earnings for the quarter ending January are forecast at 73 to 81 cents per share, compared with expectations of 78 cents. Artificial intelligence-enabled PCs have become a key growth driver for the company, accounting for over 30 per cent of shipments in the quarter to October 31. Rising memory chip costs, fuelled by increased demand from data centres, present a challenge for PC makers including HP, Dell and Acer. HP said it has sufficient inventory to cushion the impact in the first half of the year. “For the second half, we are taking a prudent approach to our guide, while at the same time we’re implementing aggressive actions,” Lores said. Measures include expanding supplier networks, reducing memory in devices where possible and adjusting prices. In the fiscal fourth quarter, HP reported revenue of $14.6 billion, up 4.2 per cent, with adjusted earnings of 93 cents per share. PC unit sales rose 8 per cent, while printer revenue fell 4 per cent to $4.27 billion.
HP’s announcement comes amid continued job reductions across the technology sector. Apple recently cut roles across its global sales division, while Amazon has removed about 30,000 corporate positions and plans to reduce more than 14,000 additional jobs. Meta has also reduced several hundred roles within its AI teams.with agency inputs