HP confirmed on 25 November 2025 that it plans to cut up to 6,000 jobs by fiscal 2028. CEO Enrique Lores said the restructuring will expand AI integration across global operations, outlining why HP layoffs are central to the company’s long-term cost and productivity strategy.
What changed in HP’s global strategy
The company said that new automation systems will be embedded across product design, sales, customer service and manufacturing. It expects this restructuring to produce nearly USD 1 billion in annual savings by 2028. The plan marks one of the company’s broadest organisational shifts in the past several years.
Impact on workforce and operations
Roles in internal operations, customer support and product development will see the largest effect from HP layoffs. The announcement follows earlier reductions of roughly 1,000 to 2,000 jobs earlier this year. The company stated that deeper AI adoption will guide both workflow changes and resource allocation.
Supporting data and market conditions
According to HP, AI-enabled laptops accounted for more than 30 percent of all shipments in the quarter ending 31 October. At the same time, rising memory chip prices have strained cost structures. Morgan Stanley analysts noted increasing DRAM and NAND prices, driven by global demand for AI infrastructure. Lores said the company expects these pressures to influence results in the second half of fiscal 2026 and outlined steps to manage expenses, such as qualifying lower-cost suppliers and adjusting memory configurations.
How HP layoffs connect toiIndustry trends
Several global companies have adopted similar actions as AI reshapes cost models and staffing needs. HP joins Amazon and Apple, which have also reduced headcount to align their operations with new AI-first priorities. The company described HP layoffs as part of a broader effort to build a competitive position in a changing technology market.
Going forward
HP projected adjusted earnings of USD 2.90 to USD 3.20 per share for fiscal 2026. It also stated that near-term disruption from HP layoffs will support longer-term operational gains once AI systems scale across global teams.
