HP Inc., the global computing and printing giant, has announced a significant corporate overhaul that will result in the elimination of thousands of positions worldwide. The company confirmed plans to cut up to 6,000 jobs globally by the end of Fiscal Year 2028, explicitly linking the move to a strategic shift toward AI integration and automation.
The massive restructuring plan, dubbed “Future Ready,” is designed to streamline operations, reduce costs, and reposition the company to better compete in a rapidly changing technological landscape where Artificial Intelligence is driving efficiency.
The Driving Force: AI and Automation
HP Chairman and CEO, Enrique Lores, framed the job reductions not just as a cost-cutting measure, but as an essential pivot toward a more digitally enabled operational model.
“Our transformation is rooted in becoming a more automated, digitally driven company,” Lores stated in a recent investor briefing. “The reduction in roles is a necessary step to accelerate product innovation, improve customer satisfaction, and boost overall productivity through the adoption of AI-powered solutions.”
The specific areas targeted for automation include:
Customer Support: Implementing advanced AI chatbots and virtual agents to handle routine inquiries.
Back-Office Operations: Automating repetitive tasks in finance, HR, and supply chain management.
Product Development: Utilizing AI tools to speed up design and testing cycles for new PC and printing hardware.
Impact on the Workforce and Industry Trend
The 6,000 job cuts represent approximately 10% of HP’s total workforce. The company estimates that the restructuring will result in total costs (primarily severance and related expenses) of approximately $1 billion, which it expects to recoup through long-term annualized savings.
This move by HP is the latest and one of the largest examples of a major corporation formally linking job cuts to the integration of generative AI. It solidifies the industry trend where established tech companies are increasingly replacing traditional administrative and support roles with sophisticated AI and automated systems.
While HP forecasts a near-term impact on its global teams, it maintains that the strategic focus on AI will ultimately lead to the creation of new roles focused on high-value tasks, AI engineering, data science, and managing the automated infrastructure.
Financial Outlook
Despite challenging market conditions in the PC and printing sectors, HP reiterated its commitment to returning capital to shareholders, highlighting that the operational savings generated by the AI-driven overhaul will contribute positively to its long-term earnings per share growth starting in Fiscal Year 2026. The companyβs immediate focus is now on executing the “Future Ready” plan smoothly while minimizing disruption to its global customer base.