HP Will Lay Off Up To 6,000 Employees In 2028 For Transformation To AI Technology

HP Enrique Lores CEO (photo: x @DrEliDavid)

JAKARTA - technology company HP Inc. announced it will cut between 4,000 and 6,000 employees before the end of 2028 as part of a major strategy to accelerate the transformation of artificial intelligence-based enterprises (AI).

This cuts has the potential to cover up to 10% of the company's total workforce, according to a Stock Analysis report. After the announcement, HP shares fell 5.5% in trading after exchange hours, according to Reuters.

This move is part of the company's major initiative to generate cost-saving of US$1 billion through the 2028 fiscal year. To achieve this target, HP projects restructuring costs of US$650 million, of which around US$250 million will be issued in the 2026 fiscal year.

In a statement, HP Enrique Lores CEO confirmed that this restructuring is not only a matter of cutting costs, but also about updating the way the company operates.

"As we accelerate the innovation of AI-powered devices to increase productivity, security, and flexibility for customers, our focus on FY26 is disciplined execution," Lores said.

In its performance presentation, HP emphasized the company's strategy for:

increasing customer satisfaction,

Speed up product innovation,

increasing productivity through AI adoption and implementation,

and achieve efficiency through reduced labor and program consolidation.

Lores added that the company has been running a AI-use trial project since two years ago, and changing business processes was key before AI-based automation could have a significant impact.

This is not the first time HP has cut labor in recent years. In February, the company had laid off about 2,000 employees as part of a previous restructuring plan, according to data from the layoffs technology layoffs tracking site.fyi.

The announcement of this layoff was released in conjunction with the 2025 HP fiscal performance report which noted:

Annual revenue: 55.3 billion US dollars (up 3.2% YoY)

Free cash flow: 2.9 billion US dollars

GAAP's profit per share fell 5.7%

HP has not provided additional details regarding the area or business units that will be affected by the cut in the workforce.