HP to Slash 4,000 to 6,000 Jobs by 2028 as it Shifts to AI-Powered Growth
In a move that signals its commitment to artificial intelligence (AI), computer hardware giant HP Inc. plans to cut between 4,000 and 6,000 jobs worldwide by the end of October 2028. The restructuring plan, which is expected to result in $1 billion in annual savings, will see job losses across various departments, including product development, internal operations, and customer support.
The decision comes as HP seeks to accelerate its product innovation, improve customer satisfaction, and boost productivity through AI adoption. According to CEO Enrique Lores, embedding AI into the company's operations will be crucial to driving growth in the years to come.
However, the job cuts are not without precedent, with many tech companies opting to reduce workforce numbers as they shift towards AI-powered automation. In recent months, several US technology companies have announced significant layoffs, citing consumer spending slowdowns and higher prices as key factors.
Analysts predict that up to 3 million low-skilled jobs could disappear in the UK by 2035 due to automation and AI, with the National Foundation for Educational Research warning of a significant impact on occupations such as trades, machine operations, and administrative roles.
The impact of AI on employment is a pressing concern globally. According to a report by the McKinsey Global Institute, about 40% of jobs in the US could be replaced by AI, with tasks such as data entry, financial processing, and drafting documents likely to be automated.
Despite the challenges posed by AI adoption, HP's latest quarterly earnings report revealed strong demand for AI-enabled PCs, which accounted for over 30% of its shipments. However, the company's adjusted net earnings per share forecast for the coming year was below analysts' expectations, citing added costs from US trade tariffs.
As the tech industry continues to navigate the impact of AI on employment and growth, HP's decision serves as a reminder that companies must adapt quickly to remain competitive in a rapidly evolving landscape. With AI set to play an increasingly important role in driving business innovation, it remains to be seen how this trend will affect job numbers in the coming years.
In a move that signals its commitment to artificial intelligence (AI), computer hardware giant HP Inc. plans to cut between 4,000 and 6,000 jobs worldwide by the end of October 2028. The restructuring plan, which is expected to result in $1 billion in annual savings, will see job losses across various departments, including product development, internal operations, and customer support.
The decision comes as HP seeks to accelerate its product innovation, improve customer satisfaction, and boost productivity through AI adoption. According to CEO Enrique Lores, embedding AI into the company's operations will be crucial to driving growth in the years to come.
However, the job cuts are not without precedent, with many tech companies opting to reduce workforce numbers as they shift towards AI-powered automation. In recent months, several US technology companies have announced significant layoffs, citing consumer spending slowdowns and higher prices as key factors.
Analysts predict that up to 3 million low-skilled jobs could disappear in the UK by 2035 due to automation and AI, with the National Foundation for Educational Research warning of a significant impact on occupations such as trades, machine operations, and administrative roles.
The impact of AI on employment is a pressing concern globally. According to a report by the McKinsey Global Institute, about 40% of jobs in the US could be replaced by AI, with tasks such as data entry, financial processing, and drafting documents likely to be automated.
Despite the challenges posed by AI adoption, HP's latest quarterly earnings report revealed strong demand for AI-enabled PCs, which accounted for over 30% of its shipments. However, the company's adjusted net earnings per share forecast for the coming year was below analysts' expectations, citing added costs from US trade tariffs.
As the tech industry continues to navigate the impact of AI on employment and growth, HP's decision serves as a reminder that companies must adapt quickly to remain competitive in a rapidly evolving landscape. With AI set to play an increasingly important role in driving business innovation, it remains to be seen how this trend will affect job numbers in the coming years.