HP announced plans to cut between 4,000 and 6,000 employees by the end of 2028. The Palo Alto company aims to save $1 billion through this restructuring. According to Fox Business, the layoffs could affect up to 10% of HP’s total workforce. Shares fell 5.5% in extended trading after the announcement.
Cost Savings Drive Restructuring Plan
HP expects to spend $650 million on restructuring costs through fiscal 2028. The company plans to invest $250 million of that total in fiscal 2026. CEO Enrique Lores said the cuts support more than cost reduction. The company wants to transform its operations through AI adoption.
HP reported $55.3 billion in annual revenue for fiscal 2025. That figure marks a 3.2% increase from the prior year. The company also generated $2.9 billion in free cash flow. GAAP earnings per share declined 5.7% during the same period.
AI Strategy Shapes Business Redesign
Lores told reporters the company started AI pilots two years ago. HP learned it must redesign processes before implementing AI tools. The CEO said this approach can create significant impact. The company aims to drive customer satisfaction and product innovation through AI adoption.
Job Cuts Continue Multi-Year Trend
HP laid off 2,000 employees in February as part of an earlier restructuring plan. The tracking site layoffs.fyi recorded those cuts. The new announcement extends the company’s workforce reduction timeline through 2028. HP’s earnings presentation outlined plans for workforce reductions and program consolidations.
The company stated its strategy focuses on AI-powered devices. HP wants to improve productivity and security for customers. The restructuring aims to support disciplined execution in fiscal 2026. Lores emphasized the strength of HP’s product portfolio in his statement. The company continues to operate in what it calls a dynamic environment.
