Computer and printer maker HP announced plans on November 25 for a new wave of global layoffs to take place by the end of 2028, estimating a reduction of between 4,000 to 6,000 employees, potentially up to 10% of its global workforce.
HP's stock price dropped 5.5% following the announcement, which is part of the Silicon Valley tech giant's strategy to accelerate its push to lower its employee headcount by replacing certain roles with artificial intelligence.
The layoffs are closely linked to a broader effort to reduce the company's regular expenses by $1 billion before the end of fiscal year 2028, according to Reuters.
The restructuring is expected to cost approximately $650 million, with $250 million alone in fiscal year 2026.
AI and Agent-Based AI Technology Integration Across Operations
HP's CEO Enrique Lores stated that the layoffs are not merely cost-cutting efforts but a necessary step towards an AI-driven operational model.
He emphasized that the company's performance in 2025 demonstrated the resilience of its product portfolio and the team's ability to thrive in a rapidly changing tech landscape.
As a result, the company will focus its efforts in 2026 on refining AI devices to enhance productivity, security, and flexibility for customers.
Reuters further noted that during a conference call with the media, Lores disclosed that several internal company experiments over the past two years, redesigning key processes and integrating AI technologies, had a significant impact on productivity.
2,000 Staff Laid Off in February This Year
HP laid off 2,000 employees in February 2025 in a decision also categorized as part of a restructuring plan, according to records by the tech industry layoff tracker website Layoffs.fyi.
The announcement of even larger cuts has drawn significant market attention to the company, which reported free cash flow of $2.9 billion and an annual revenue of $55.3 billion in FY 2025, a year-on-year increase of 3.2%.
