HP Inc. plans to lay off between 4,000 and 6,000 employees worldwide by fiscal 2028 as part of an efficiency push driven by artificial intelligence adoption across product development, customer support and internal operations.
CEO Enrique Lores said the restructuring is expected to deliver $1 billion in savings over the next three years, although shares fell 5.5% in extended trading after the announcement. The company had previously cut up to 2,000 jobs in February under an earlier restructuring plan.
AI PC demand now accounts for more than 30% of HP’s Q4 shipments, but the tech giant expects higher memory chip prices — driven by AI data centre demand — to pressure margins from late 2026.
HP projects 2026 adjusted earnings per share at $2.90–$3.20, below analyst expectations. Q4 revenue reached $14.64 billion, slightly above estimates.
