HP is preparing one of its largest restructurings in years, planning to cut up to 6,000 jobs by fiscal 2028 as it doubles down on artificial intelligence to streamline operations, optimize product development, and maintain competitiveness.

HP is preparing one of its largest restructurings in years, planning to cut up to 6,000 jobs by fiscal 2028 as it doubles down on artificial intelligence to streamline operations, optimize product development, and maintain competitiveness.

HP Moves Aggressively Toward AI-Driven Operations

HP has declared that it will reduce its global workforce by 4,000 to 6,000 jobs by fiscal 2028, which could represent around 10 percent of its total staff. CEO Enrique Lores said the cuts will mostly impact teams in product development, internal operations, and customer support, as the company reallocates resources toward AI-driven processes. The restructuring is projected to deliver roughly US$1 billion in savings over three years.

This announcement follows a prior layoff earlier in the year, reflecting a long-term pivot toward automation and AI-assisted workflows.

AI-Enabled PCs Become Key Growth Driver

Demand for AI-enabled PCs is rising rapidly, now accounting for over 30% of HP’s shipments in the quarter ending Oct 31. The company sees AI as central to improving customer experience, accelerating product innovation, and simplifying internal processes. The shift mirrors broader industry trends as major firms like Google, Microsoft, and Amazon reallocate resources, including the staff, toward AI.

Industry analysts say AI automation is increasingly impacting roles in customer support, content moderation, data entry, and even certain programming tasks.

Chip Price Surge Adds New Pressures

A global surge in memory-chip prices, driven by strong demand from data centres and large-scale AI infrastructure builds, is expected to squeeze margins for PC manufacturers including HP through fiscal 2026. Analysts warn that rising DRAM and NAND costs could hit profitability for firms relying heavily on commodity components.

Lores said HP will feel the price impact more strongly in the second half of fiscal 2026. To mitigate costs, HP is qualifying lower-cost suppliers, reducing memory configurations, and implementing price adjustments.

Financial Outlook Falls Short of Estimates

HP forecasts fiscal 2026 adjusted earnings per share at US$2.90 to US$3.20, below analyst expectations of US$3.33. Its Q1 outlook also disappointed, with projected earnings of 73 to 81 cents, slightly under the market’s midpoint estimate.

Still, HP’s fourth-quarter revenue hit US$14.64 billion, surpassing estimates of US$14.48 billion, reflecting stable demand despite industry volatility.

Industry-Wide Workforce Shifts

HP’s restructuring aligns with a broader trend of job reductions across major tech companies adapting to the AI era. Over the past two years, top firms have trimmed thousands of roles as operational models shift toward automation and high-efficiency digital processes. CNA has reached out to HP for clarity on how the restructuring may impact roles in Singapore.

Balancing Efficiency, Innovation, and Workforce Disruption

As HP leans further into AI-driven processes, the company faces the challenge of balancing cost efficiency with long-term innovation—and doing so amid rising component prices and evolving global competition. The shift underscores a broader transformation sweeping the tech sector as AI becomes foundational to product development, customer service, and corporate strategy.

HP’s decision to cut thousands of jobs reflects a larger realignment across the global tech industry as AI becomes the new engine of competitiveness. For workers across the region, including in Southeast Asia, the trend signals growing demand for AI-related skills and rising pressure on traditional technology roles. For businesses and governments, it highlights the need to anticipate rapid shifts in the digital workforce and the supply chains that support it.

Sources: CNN (2025) , CNA (2025)

Keywords: HP Workforce Reduction, AI Adoption, Memory Chip Prices, Tech Industry Trends, HP Earnings