HP Inc. said it will lay off 4,000 to 6,000 employees as it expands AI deployments, aiming to save about $1 billion in annualized gross run rate by the end of fiscal 2028. The company expects to complete the layoffs by that fiscal year.
The reductions will largely hit product development, internal operations, and customer support, HP CEO Enrique Lores said during an earnings call on Tuesday. He added that using AI will help accelerate product innovation, improve customer satisfaction, and boost productivity.
In its fiscal 2025 earnings report, HP described structural cost savings tied to operational efficiency, digital transformation, and portfolio optimization, noting these initiatives include but are not limited to workforce reductions, platform simplification, programs consolidation and productivity measures intended to be sustainable in the longer-term.
AI-driven layoffs have drawn attention as workers debate how automation will shape employment. Salesforce cut 4,000 customer-support jobs; Amazon has announced large rounds of layoffs tied to AI priorities; Klarna and Duolingo have also replaced significant numbers of workers with AI.
Analysts emphasize that the causal link between AI and job losses is nuanced: some see AI as a driver of restructuring, others warn about overstating the impact. The World Economic Forum predicts AI will create more jobs than it eliminates by 2030, though the pace and distribution will vary by sector.
