HP said on Tuesday that it expects to cut between 4,000 and 6,000 jobs globally by fiscal 2028 as part of a plan to streamline operations and adopt artificial intelligence to speed up product development, improve customer satisfaction and boost productivity.
CEO Enrique Lores said during a media briefing call that the company’s teams focused on product development, internal operations and customer support will be impacted by the job cuts.
“We expect this initiative will create $1 billion in gross run rate savings over three years,” Lores added.
Back in February, HP laid off 1,000 to 2,000 employees, as part of a restructuring plan. Demand for AI-enabled PCs has continued to ramp externally, reaching over 30% of HP’s shipments in the fourth quarter ended Oct. 31. Morgan Stanley analysts have warned that a global memory chip price surge brought on by rising demand from data centers could push up costs and pressure profits at consumer electronics makers such as HP, Dell, and Acer.
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Lores said that HP expects to feel the impact in the second half of fiscal 2026 with higher price increases. HP has enough inventory in hand for the first half. “We are taking a prudent approach to our guide for the second half, while at the same time implementing aggressive actions like qualifying lower cost suppliers, reducing memory configurations and taking price actions,” Lores said.
HP expects adjusted first-quarter profit per share between 73 cents and 81 cents, with the midpoint coming below estimates of 79 cents apiece.
This comes amid a major wave of corporate layoffs. Other companies that have conducted major layoffs include Amazon (14,000 corporate jobs), Paramount (1,000 workers), and Molson Coors (400 jobs).
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The sharp rise in corporate layoffs throughout 2025 reflects ongoing changes in the U.S. economy shows that many established companies are adjusting to new market conditions marked by slower growth, higher costs, and rapid technological transformation.
Some firms have cited restructuring, mergers, or efficiency improvements as reasons for their staff reductions, while others have mentioned automation or shifting consumer demand. However, specific figures and causes can vary, and not all companies publicly attribute their layoffs to the same factors.
“You’ve got a substantial number of well-established companies making pretty big head cuts,” says Dan North, senior economist at Allianz Trade Americas. You might start to wonder if “these aren’t random.” Federal Reserve Chair Jerome Powell said he sees “very gradual cooling” in the labor market “but nothing more than that.”