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HP on Tuesday said it will cut between 4,000 and 6,000 jobs by the end of 2028 as it goes all-in on AI.
The PC and printer company announced the cuts in its earnings report, estimating it will save approximately $1 billion by 2028 as it implements the changes. The company estimates it will incur roughly $650 million in costs related to the restructuring, with about $250 million of the expense falling in fiscal 2026.
HP’s strategy is to “drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement,” and achieve cost savings through “workforce reductions, platform simplification, programs consolidation, and productivity measures,” according to its earnings presentation.
“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 the 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 agenetic AI, it can really have a very significant impact.”
He added later in the call that the company “finished 2025 strong, growing profit from the first half to the second.”
“In 2026, we intend to grow faster than the market,” he added. “We have a significant opportunity to embed AI in everything we do and transform the company.”
The company beat revenue expectations in Q4. However, Bloomberg analysts forecast that the company would post an EPS of $3.32 in 2026, while HP estimated its non-GAAP diluted net EPS to be in the range of $2.90 to $3.20, which is below analysts’ expectations.
HP’s stock was down more than 5% in after-hours trading at the time of publication, and is down more than 25% year-to-date.
Business Insider previously reported that the era of AI-driven layoffs is hitting white-collar industries particularly hard, with companies such as Amazon and Workday announcing significant job cuts related to advancements in artificial intelligence.
