HP Inc. announced it would lay off 4,000 to 6,000 employees to accelerate AI adoption, claiming it would save $1 billion in total annual utilization by the end of fiscal year 2028.
HP plans to complete the layoffs by the end of the fiscal year. HP CEO Enrique Lores said on Tuesday’s earnings call that the job cuts will have a significant impact on product development, internal operations and customer support.
By leveraging AI, HP will “accelerate product innovation, improve customer satisfaction and improve productivity,” Lores said.
In its fiscal year 2025 earnings report released yesterday, HP said:
Structural cost savings represent significant cost reductions driven by operational efficiency, digital transformation, and portfolio optimization. These efforts include, but are not limited to, headcount reductions, platform simplifications, program consolidation and productivity measures undertaken by HP. HP expects these to be sustainable in the long term.
AI is responsible for the dismissal of engineers.
HP’s announcement comes as workers around the world are trying to decipher how AI will impact their future positions and job opportunities. Some industries, such as customer support, are expected to be more disrupted than others. But we’ve already seen a lot of tech layoffs related to AI.
For example, Salesforce announced in October that it was laying off 4,000 customer support employees, with CEO Marc Benioff saying that AI “reduced the number of people we need.” In September, U.S. senators accused Amazon of firing “tens of thousands” of employees and replacing them with more than 10,000 foreign H-1B employees for “adopting generative AI tools.” Last month, Amazon announced it would lay off about 14,000 people to focus on its most promising projects, including generative AI. Last year, Intuit announced it would lay off 1,800 people and replace them with AI-focused workers. Klarna and Duolingo have also replaced significant numbers of workers with AI. And in January, Meta announced plans to lay off 5% of its workforce to streamline operations and build its AI business.
