Is this what the future of work looks like? HP Inc. has announced it intends to lay off 4,000 to 6,000 employees worldwide by the end of fiscal 2028 in a dramatic reshaping of operations toward automation and AI-driven operations.
The layoffs come as HP doubles down on its commitment to integrating artificial intelligence more deeply across operations, from product development to customer support and internal workflows. According to the company, the initiative is projected to deliver roughly US$1 billion in gross run-rate savings within three years, even after accounting for an estimated US$650 million in restructuring charges.
Why Trim the Workforce When Profits Aren’t the Problem?
At first glance, the decision does seem counterintuitive. After all, the recent quarterly results from HP painted a reasonably upbeat picture: net revenues came in at US$14.6 billion in the fourth quarter, while free cash flows reached approximately US$2.9 billion.
However, management’s forward guidance and market dynamics reveal deeper challenges. Rising global memory chip costs, fueled by surging demand from AI data centers, are squeezing profit margins across the PC and printing hardware sectors, of which HP remains a major player.
HP aims to hasten its internal AI adoption to improve productivity, automate repetitious processes, and accelerate product innovation. It says automation can take over some functions without compromising on quality and speed of delivery. Enrique Lores, chief executive officer, emphasizes this strategic pivot as key to competitive positioning in a rapidly digitizing world.
What’s at Stake for Employees and HP’s Future Plan?
These reductions will affect teams primarily involved in product development, internal operations, and customer support.
While previous rounds of employee layoffs often were the result of poor sales or restructuring post-acquisition, this round is specifically based on new corporate goals made possible through artificial intelligence integration. The integration of AI represents an organizational transformation, rather than a short-term business survival tactic.
To this end, the AI integration demonstrates a growing recognition that well-established corporations with significant financial resources must adapt to advances in technology, as well as the changing nature of the marketplace. This recognition raises some serious ethical questions surrounding the social implications of mass layoffs due to the use of AI in even large multinational corporations.
The Bigger Picture: AI Is Redrawing the Tech Workforce
HP is hardly alone. Dozens of leading tech companies announced layoffs in 2025, either despite or because of their increasing investment in AI and automation. Some are cutting jobs in customer support, sales, and operations; others consolidate whole departments under AI-enabled platforms.
For many businesses, AI is no longer an experimental add-on: it’s fast becoming central to cost structure, innovation capability, and competitive positioning. As firms like HP try to stay lean while investing heavily in R&D and next-gen products, workforce reductions may be expanding from discretionary trimming into systematic reorganization.
Stakeholders, Risks, and the Road Ahead
For shareholders, HP’s strategy offers a potential dual upside: improved efficiency and long-term sustainability in a hardware-heavy business increasingly under pressure from the rising costs of components and shifting consumer demand. The statement has indeed served as a clear reminder for employees, especially in job positions threatened by automation, that adaptability and upskilling are more critical nowadays. As AI becomes deeply embedded in core processes, roles focused on repetitive tasks or support functions risk becoming redundant.
Looking ahead, it is how HP executes, not the promise itself. The company has committed to completing the workforce reductions by 2028. Whether it can reinvest the cost savings effectively into AI-enabled development, R&D, new product lines, or staff retraining will determine whether the gamble pays off.
At a time when many traditional technology firms are grappling with slowing demand and supply-chain pressures, and facing increasing competition from cloud-native rivals, HP’s strategy could signal a significant shift from human-driven hardware manufacturing to AI-driven hardware and services. Whether this transformation secures long-term competitiveness or yields only disruptive short-term consequences for the global workforce remains to be seen.
