HP Inc. said it would lay off 4,000 to 6,000 employees in favor of AI, claiming it would save $1 billion in annual gross revenue by the end of fiscal 2028.
HP expects to complete the layoffs by the end of the fiscal year. The cuts will primarily affect product development, internal operations and customer support, said HP CEO Enrique Lores. said during Tuesday's earnings call.
Using artificial intelligence, HP will “accelerate product innovation, improve customer satisfaction and improve productivity,” Lores said.
In its fiscal 2025 earnings report released yesterday, HP said:
Structural cost savings are gross cost reductions driven by operational efficiencies, digital transformation and portfolio optimization. These initiatives include, but are not limited to, workforce reduction, platform simplification, program consolidation and productivity improvements undertaken by HP, which HP expects to be sustainable in the long term.
AI blamed for tech layoffs
HP's announcement comes as workers everywhere grapple with how AI will impact their future job statuses and employment opportunities. Some industriessuch as customer support are expected to be more disrupted than others. But we've already seen a lot of layoffs in AI-related tech.
Salesforce, for example, announced in October that it had laid off 4,000 customer service employees, and CEO Marc Benioff speaking that the AI meant: “I need fewer heads.” In September, US Senators accused Amazon blaming the layoffs of “tens of thousands” of employees on the “implementation of generative artificial intelligence tools” and then replacing those workers with more than 10,000 foreign H-1B employees. Last month Amazon announced the company will lay off about 14,000 people to focus on its most promising projects, including generative artificial intelligence. Last year, Intuit said it would quit. 1800 people and replace them with AI-focused workers. Klarna And Duolingo also replaced a significant number of workers with artificial intelligence. And in January Meta announced plans fire 5 percent of its workforce as it looks to streamline operations and build its AI business.
