TL;DR

HP will cut between 4,000 and 6,000 jobs by October 2028 as the company increasingly adopts AI to accelerate product innovation and boost productivity. The cuts, affecting product development, operations, and customer support teams, are expected to save $1bn annually.

AI Driving Workforce Transformation

HP has announced significant workforce reductions as part of its strategy to embed AI across its operations. The California-based computer and printer maker, which employs approximately 56,000 people, expects the cuts to generate $1bn in annual savings by 2028, though the restructuring will cost an estimated $650m.

CEO Enrique Lores highlighted the opportunity to use AI for accelerating product innovation, improving customer satisfaction, and boosting productivity. This follows previous cuts of 1,000 to 2,000 staff in February as part of an earlier restructuring plan.

Part of a Broader Trend

HP joins a growing list of companies citing AI when announcing workforce reductions:

  • Clifford Chance: The law firm recently reduced London business services staff by 10%, partly attributing the change to AI adoption
  • PwC: The consulting firm scaled back hiring plans, with its head saying AI had changed recruitment needs
  • Klarna: The buy now, pay later company almost halved its workforce over three years through natural attrition, replacing departing staff with technology

A UK educational research charity has warned that up to 3 million low-skilled jobs could disappear in Britain by 2035 due to automation and AI, with trades, machine operations, and administrative roles most at risk.

Looking Forward

Despite the job cuts, HP reported strong demand for AI-enabled PCs, which made up over 30% of shipments in Q4. However, the company faces challenges from rising memory chip costs driven by datacentre demand for AI infrastructure. As AI capabilities mature, businesses across sectors will continue to evaluate how the technology can transform their operations—though the human impact of these decisions remains a critical consideration.

Source: The Guardian

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