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- HP announced that it will be reducing its corporate head count due to AI-driven initiatives.
- The PC and printer company will cut between 4,000 and 6,000 jobs by the end of fiscal 2028.
- The company estimates it will save approximately $1 billion.
HP on Tuesday announced it will cut between 4,000 and 6,000 jobs by the end of 2028 as it goes all-in on AI.
The PC and printer company announced the cuts in its earnings report, estimating it will save approximately $1 billion by 2028 as it implements the changes. The company estimates it will incur roughly $650 million in costs related to the restructuring, with about $250 million of the expense falling in fiscal 2026.
HP's strategy is to "drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement," and achieve cost savings through "workforce reductions, platform simplification, programs consolidation, and productivity measures," according to its earnings presentation.
The company beat revenue expectations in Q4. However, Bloomberg analysts forecast that the company would post an EPS of $3.32 in 2026, while HP estimated its non-GAAP diluted net EPS to be in the range of $2.90 to $3.20, which is below analysts' expectations.
HP's stock was down more than 5% in after-hours trading at the time of publication, and is down more than 25% year-to-date.
This is a developing story. Please check back for updates.
