HP to slash up to six,000 jobs — latest tech company to pivot to AI
HP said Tuesday it expects to cut between 4,000 and 6,000 jobs globally by fiscal 2028 as half of a plan to streamline operations and adopt artificial intelligence to speed up product development, improve buyer satisfaction and increase productiveness.
Shares of the Palo Alto, Calif.-based company fell more than 5% in prolonged trading.
HP’s groups centered on product development, inside operations and buyer help shall be impacted by the job cuts, CEO Enrique Lores said during a media briefing call. The cuts would characterize up to 10% of its workforce.
The company laid off an further 1,000 to 2,000 staff in February, as half of a beforehand announced restructuring plan. AFP by way of Getty Images
“We expect this initiative will create $1 billion in gross run rate savings over three years,” Lores added.
The company laid off an further 1,000 to 2,000 staff in February, as half of a beforehand announced restructuring plan.
Demand for AI-enabled PCs has continued to ramp externally, reaching over 30% of HP’s shipments in the fourth quarter ended Oct. 31.
A global reminiscence chip price surge introduced on by rising demand from data facilities may push up prices and stress income at shopper electronics makers such as HP, Dell and Acer, Morgan Stanley analysts have warned.
Big Tech’s push to build out AI infrastructure has triggered price will increase for dynamic random entry reminiscence and NAND — two generally used sorts of reminiscence chips — amid high competitors in the server market.
Demand for AI-enabled PCs has continued to ramp externally, reaching over 30% of HP’s shipments in the fourth quarter ended October 31. REUTERS
Lores said that HP expects to really feel the impression in the second half of fiscal 2026, with increased price will increase. HP has enough stock in hand for the first half.
“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.
The company expects fiscal 2026 adjusted revenue per share between $2.90 to $3.20, below analysts’ average estimate of $3.33, according to data compiled by LSEG.
HP expects adjusted first-quarter revenue per share between 73 cents and 81 cents, with the midpoint coming below estimates of 79 cents apiece.
Revenue for the fourth quarter was $14.64 billion, beating estimates of $14.48 billion.
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