HP Inc. has announced a plan to reduce its workforce by 4,000 to 6,000 positions by the end of fiscal year 2028. The layoffs are part of a broader initiative to leverage AI for cost savings and operational improvements. The company has already begun implementing these changes, with initial cuts impacting specific locations and teams.
What happened
HP Inc. is undertaking an AI-driven transformation plan that includes workforce reductions. As part of this plan, Hewlett-Packard has already cut 52 positions at its San Jose campus.
How many employees affected
The company plans to eliminate between 4,000 and 6,000 positions, representing approximately 12% to 15% of its total workforce of 58,000. 52 employees have already been laid off in San Jose.
Why layoffs happened
The layoffs are a component of HP's AI-driven transformation initiative. The company aims to achieve $1 billion in cost savings through these measures.
Company background
HP Inc. is a major technology company specializing in personal computers, printers, and related supplies, as well as 3D printing solutions.
Industry impact
The layoffs reflect a broader trend in the technology industry, where companies are increasingly looking to AI and automation to improve efficiency and reduce costs. This transformation can lead to significant workforce restructuring.
What's next
The layoffs are expected to continue through fiscal year 2028, impacting various teams, including product development, operations, and customer support. Further restructuring updates are anticipated as the company progresses with its AI-driven transformation.