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HP may slash 6,000 jobs globally as it hastens adoption of AI-enabled PCs
- IBJ Bureau
- Nov 26, 2025
HP has said that it expects to cut between 4,000 and 6,000 jobs globally by financial year 2028 as a part of a plan to streamline operations and adopt artificial intelligence (AI) to speed up product development, improve customers’ satisfaction and boost productivity.
HP’s teams focused on product development, internal operations and customer support will be impacted by job cuts, CEO Enrique Lores has said during a media briefing call.
“We expect this initiative will create $1 billion in gross run rate savings over three years,” Mr Lores has added.
The company had laid off an additional 1,000 to 2,000 employees in February as a part of a previously-announced restructuring plan.
Demand for AI-enabled PCs has continued to ramp externally, reaching over 30 per cent of HP’s shipments in the fourth quarter ended October 31.
A global memory chip price surge brought on by rising demand from data centres could push up costs and pressure profits at consumer electronics makers such as HP, Dell and Acer, Morgan Stanley analysts have warned.
Big Tech’s push to build out AI infrastructure has triggered price increases for dynamic random access memory and NAND – two commonly-used types of memory chips – amid high competition in the server market.
Mr Lores has said that HP expects to feel the impact in the second half of financial year 2026. “We are taking a prudent approach to our guide for the second half, while at the same time implementing aggressive actions like qualifying lower cost suppliers, reducing memory configurations and taking price actions,” Mr Lores has added.
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