HP Announces Layoffs of 4,000–6,000 Employees by FY28 as Company Accelerates Shift Toward AI Transformation

HP Announces Layoffs of 4,000–6,000 Employees: Tech giant HP to lay off 4,000–6,000 employees by FY28 in a major restructuring strategy focused on AI and automation. The company aims to boost profitability, streamline operations, and invest heavily in artificial intelligence and hybrid work technologies.

In a significant restructuring development shaking the global tech industry, HP Inc. has announced that it plans to lay off between 4,000 and 6,000 employees by the end of FY28. The tech giant confirmed that the move is part of a strategic realignment, as the company shifts its long-term focus toward AI-powered operations, automation, and next-generation digital infrastructure.

https://digitalamitkaul.online/trade-war-global-economy-under-pressure/

The layoff decision comes at a time when many global technology companies are restructuring their workforces amid shifting economic conditions and the rapid adoption of artificial intelligence (AI) across industries. HP stated that the layoffs will occur gradually over the next three years and will be supported through severance benefits, internal job transitions, and reskilling programs where possible.

HP Announces Layoffs of 4,000–6,000 Employees: HP shifts priority to AI and automation

According to HP’s executive leadership, the company’s goal is to streamline operational costs, improve efficiency, and aggressively invest in AI-driven products, hybrid computing, cybersecurity, robotics, and cloud-based print technology. As the demand for traditional PC and printing hardware continues to decline globally, HP is transforming its business model to embrace AI innovation, smart devices, and digital services instead of legacy hardware dominance.

The restructuring plan is expected to generate substantial cost savings for the company. HP estimates that the new strategy will result in annual savings of up to $1.6 billion by FY28. Executives emphasized that these savings will be reinvested in research, product development, and expansion of future-tech verticals.

Market slowdown and global economic pressure

The announcement follows a period of financial pressure influenced by declining PC sales, unpredictable global market conditions, and a slowdown in consumer spending. Analysts say that the reduction in workforce is consistent with industry trends, marking part of a broader wave of layoffs affecting major tech companies, including Google, Meta, Amazon, IBM, Cisco, Tesla, and Microsoft, as these companies also increase investments in AI and automation.

Industry experts believe that AI is transforming the landscape of employment, leading companies to redesign their talent strategies, reduce operational headcounts, and rebuild teams with highly specialized skill sets. As AI evolves, many roles in operations, administrative support, and manufacturing are expected to face greater automation.

HP Announces Layoffs of 4,000–6,000 Employees: HP repositions itself for the AI-first era

Speaking about the restructuring decision, HP CEO Enrique Lores emphasized that the company is entering a new era of innovation, driven by artificial intelligence and intelligent services.

“We are positioning HP for long-term growth by focusing on AI-enabled products, digital transformation, and smarter manufacturing. This restructuring is critical to strengthening our competitive edge and delivering future-focused solutions,” Lores stated.

The company highlighted that it plans to expand development in AI-based PCs, cloud printing platforms, secure remote work technologies, and enterprise AI solutions. The transformation roadmap includes redesigning internal processes using machine learning, robotics automation, and intelligent manufacturing tools to improve productivity and reduce manual workloads.

https://aamnewsnetwork.com/faa-air-traffic-reduction-2025-us-government-shutdown/

Impact on employees

While the restructuring is intended to strengthen the company’s long-term growth strategy, industry observers and union leaders have raised concerns about the emotional and financial impact on affected employees. Workforce reduction is expected across multiple regions, with specific details yet to be disclosed.

However, HP confirmed that it will offer reskilling and upskilling programs, as the company aims to retain talent in specialized technical roles critical to the future of AI development.