Tech giant Hewlett Packard (HP) has announced plans to cut between 4,000 and 6,000 jobs globally by the end of fiscal 2028, a move driven by the company’s strategic push to integrate artificial intelligence (AI) into its operations. This workforce reduction, amounting to roughly 10 percent of HP’s existing staff, reflects a broader industry trend where major technology firms are increasingly turning to AI and robotics to enhance efficiency and accelerate innovation while cutting costs.

HP's CEO Enrique Lores highlighted that the layoffs are not solely about reducing expenses but form part of a comprehensive transformation to embed AI across various facets of the company. Lores stated that this integration aims to speed up product innovation, improve customer satisfaction, and boost overall productivity. The job cuts will primarily impact teams within product development, internal operations, customer support, and certain administrative functions. The company anticipates generating approximately $1 billion in gross savings annually by 2028 as a result of this restructuring.

This announcement follows a year of turbulence for HP, whose stock has seen significant fluctuation, dropping nearly 15 percent since January but rebounding with an 83 percent gain since May. Despite those ups and downs, HP recently posted better-than-expected quarterly results, reporting $14.6 billion in revenue and an 8 percent rise in PC sales, even as printer sales declined by 4 percent. The news of the planned layoffs triggered a 5.5 percent drop in HP’s share price, reflecting investor concern over the scale of job cuts.

HP’s shift towards AI mirrors a growing concern across the workforce about the impact of automation and AI on jobs. A survey by the Trades Union Congress found that 51 percent of 2,600 adults are worried about layoffs or significant reductions in working conditions due to AI, particularly among younger workers aged 25 to 34, almost two-thirds of whom fear losing their jobs to machines. This anxiety is underscored by similar announcements from other large employers like BT, Amazon, and Microsoft, who have also flagged potential job cuts linked to advances in AI technology.

The restructuring at HP signifies a crucial juncture in how tech companies are balancing innovation with workforce realities. While the adoption of AI promises faster product development and improved customer experiences, it inevitably raises questions about the future of employment in sectors traditionally reliant on human labour. HP’s leadership maintains that this AI-driven transformation is essential for maintaining competitiveness in a rapidly evolving market, even as it prepares to reduce its workforce significantly over the next few years.

📌 Reference Map:

  • [1] (Daily Star) - Paragraphs 1, 2, 3, 4, 5, 6, 7
  • [2] (Reuters) - Paragraphs 1, 5
  • [3] (The Guardian) - Paragraphs 1, 3
  • [4] (Computing) - Paragraphs 1, 3
  • [5] (Fox Business) - Paragraphs 1, 3
  • [6] (CFODive) - Paragraph 3
  • [7] (The Hans India) - Paragraph 1, 3

Source: Noah Wire Services