HP Inc. plans to lay off between 4,000 and 6,000 employees as it ramps up AI deployments to save $1 billion annually by fiscal 2028. The cuts will primarily affect product development, internal operations, and customer support. CEO Enrique Lores stated that AI will accelerate innovation and boost productivity.
During an earnings call on Tuesday, HP CEO Enrique Lores announced that the company will reduce its workforce by 4,000 to 6,000 positions by the end of fiscal 2028. These layoffs aim to fund AI initiatives, projecting $1 billion in annualized gross run rate savings. Lores explained, “Using AI, HP will accelerate product innovation, improve customer satisfaction, and boost productivity.”
The fiscal 2025 earnings report detailed that structural cost savings stem from operational efficiency, digital transformation, and portfolio optimization, including workforce reductions and productivity measures expected to be sustainable long-term.
This move aligns with a broader trend in tech where AI is cited in layoffs. For instance, Salesforce dismissed 4,000 customer support employees in October, with CEO Marc Benioff noting AI meant “I need less heads.” Amazon faced accusations in September of replacing tens of thousands of workers with over 10,000 H-1B employees after adopting generative AI, and announced 14,000 more cuts last month to focus on AI projects. Other examples include Intuit laying off 1,800 for AI-focused roles, and Meta planning 5% workforce reductions in January to build its AI business.
Analysis from Challenger, Gray & Christmas shows 141,159 tech job cuts announced since the year's start as of October, a 17% increase from 120,470 the previous year. However, experts like Peter Cappelli from Wharton question AI's direct role, stating “there’s very little evidence that [AI] cuts jobs anywhere near like the level that we’re talking about.” Gartner predicts all IT work will involve AI by 2030, but 75% of workloads will still require humans. The World Economic Forum's 2025 report forecasts AI creating 78 million more jobs than it eliminates by 2030, based on data from 1,000 companies employing 14 million people.