HP is embarking on a significant workforce transformation that will see between 4,000 and 6,000 employees leave the company by late 2028. The restructuring reflects the computer manufacturer’s strategic pivot toward integrating artificial intelligence across its operations, from product development to customer service.
The California technology firm’s CEO, Enrique Lores, characterized AI integration as a major opportunity for the organization. By embedding these technologies into core business functions, HP anticipates improvements in innovation speed, customer experience, and operational productivity. The transition is projected to deliver $1 billion in annual cost reductions by 2028, though implementing the changes will cost an estimated $650 million initially.
This workforce adjustment affects a substantial portion of HP’s approximately 56,000 employees worldwide. Departments handling product development, internal operations, and customer support will experience the most significant impacts. The company had already reduced its headcount by 1,000 to 2,000 positions in February as part of earlier restructuring efforts.
HP’s announcement arrives amid growing recognition that AI technologies will fundamentally alter employment landscapes across industries. Research indicates that administrative tasks, data processing, financial operations, and document preparation are increasingly being handled by AI systems. Meanwhile, physically demanding and dangerous positions may increasingly be performed by robots, though human oversight and verification remain essential.
Financial pressures are also influencing HP’s strategic decisions. The company issued a weaker-than-anticipated profit forecast for the coming year, citing increased costs from trade tariffs and surging memory chip prices. These components have become more expensive due to heightened demand from datacenter operators building AI infrastructure. Nevertheless, HP achieved strong fourth-quarter revenues of $14.6 billion, supported by robust demand for AI-enabled PCs, which represented over 30% of quarterly shipments.