HP to lay off up to 6,000 workers as it goes all-in on AI and automation

HP wants to embed AI in everything it does

by · TechSpot

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What just happened? HP Inc has become the latest big tech firm to announce it is laying off thousands of jobs while investing heavily in AI. The printer and PC maker said it will be cutting staff by between 4,000 and 6,000 people by the end of fiscal 2028 as it focuses on automation tools such as agentic AI.

HP revealed the cuts in its latest earnings report. It estimates that the move will save the company $1 billion across three years. The restructuring is expected to incur around $650 million in costs, around $250 million of which will fall in fiscal 2026.

As with the many other companies laying off staff, HP says it aims to drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption.

"Two years ago, we started to do some pilots on how AI could help us to drive these things," HP CEO Enrique Lores said during an earnings call. "What we have learned is that we need to start from redesigning the process, and once we know how the process could be redone using AI, using agentic AI, it can really have a very significant impact."

Lores added that HP intended to grow faster than the market in 2026, and that it had a "significant opportunity" to embed AI in everything it does, thereby transforming the company.

There's a long list of companies that have laid off workers as a direct result of AI this year. Amazon (despite what Andy Jassy claims), Glassdoor, Indeed, Microsoft, Meta, Cisco, TikTok, IBM, and many more have let go of thousands as they opt for automation over humans.

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We've seen claims that blaming AI can be a convenient excuse for companies looking to reduce staff while also appearing cutting edge.

Earlier this month, data from workplace analytics firm Visier showed that companies are rehiring a growing share of the same employees they laid off as AI fails to live up to its promise as a cheap(er) human replacement.

Elsewhere, the memory crisis that is sending the price of DRAM through the roof is expected to impact HP, forcing it to raise the price of its devices. But Microsoft ending Windows 10 support in October is expected to push more people into buying its Windows 11 machines.

HP's stock fell more than 5% in after-hours trading and is down more than 25% year-to-date.