HP Inc. announced on Tuesday that it plans to slash 4,000 to 6,000 jobs worldwide by fiscal 2028, Reuters reported. The move is part of the company’s effort to streamline operations, adopt artificial intelligence, increase product development, improve customer service, and boost productivity.
The announcement comes just a day after Apple revealed job cuts across its sales team. The iPhone maker did not specify the exact number of jobs affected, but several major positions were eliminated.
HP plans global job cuts to boost AI and productivity
HP CEO Enrique Lores said the job reductions will affect teams working in product development, internal operations, and customer support. He added, “We expect this initiative will create $1 billion in gross run rate savings over three years.” HP had previously laid off 1,000 to 2,000 employees in February under another restructuring plan.
“We are taking a prudent approach to our guide for the second half, while at the same time implementing aggressive actions like qualifying lower cost suppliers, reducing memory configurations and taking price actions,” Lores said, according to Reuters.
HP Inc. had around 58,000 employees as of the fiscal year ending October 31, 2024. This means the planned layoffs could affect roughly 10–12% of its workforce.
According to Reuters, for fiscal 2026, HP expects adjusted profit per share to be $2.90 to $3.20, which is slighlty below analysts’ average estimate of $3.33. For the first quarter, HP expects profit per share between 73 cents and 81 cents, with the midpoint briefly below the 79 cents estimate. In the fourth quarter, HP reported $14.64 billion in revenue, which beat analysts’ expectations of $14.48 billion.
Rising demand for AI-enabled PCs
The company said that demand for AI-enabled PCs continues to see a surge. In the fourth quarter ending October 31, over 30% of HP’s shipments were AI-enabled devices.
HP and other tech companies like Dell and Acer could face higher costs because memory chip prices are rising. The change is caused by strong demand from data centres and competition in the server market. There are two main types of chips affected: dynamic random access memory (DRAM) and NAND memory.
Lores said HP expects these higher prices to affect the second half of fiscal 2026. However, the company has enough inventory to manage the first half.
Tech layoffs on the rise
In 2025, tech layoffs have seen a dramatic rise, with major companies like Amazon, Microsoft, and Google reducing staff amid economic uncertainty and AI-driven restructuring. By data,
Amazon plans to cut up to 30,000 jobs, mostly affecting corporate, HR, operations, devices, and AWS teams. The move is part of a broader plan to cut costs and invest in AI.
Microsoft has fired around 6,000 employees, about 3% of its workforce, across multiple business units and international offices, including LinkedIn.
Google has also gone through several rounds of layoffs, mostly targeting US-based teams, cutting more than 100 roles in its design and cloud divisions. Overall, the tech sector has seen more than 1 lakh layoffs this year.