PALO ALTO | California – December 2025 – HP Inc. has announced a significant restructuring plan that will reduce its global workforce by 4,000 to 6,000 positions by the end of fiscal year 2028. The initiative represents up to 10% of the company’s workforce and is designed to support HP’s long-term strategy of integrating artificial intelligence across its operations.
According to CEO Enrique Lores, the company is “redesigning processes from the ground up using AI,” underscoring that this transition is a structural modernization effort rather than a traditional cost-cutting exercise. As part of the plan, HP is targeting approximately $1 billion in annualized run-rate savings by fiscal 2028.
Departments Most Impacted
The restructuring will primarily affect roles in:
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Product Development
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Internal Operations
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Customer Support
Positions most Vulnerable to AI Include
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Customer service roles supported by AI agents and chatbots
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Administrative and back-office functions involving repetitive tasks
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Entry-level programming and quality assurance roles increasingly aided by AI tools
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Coordination-heavy internal operations positions susceptible to digital process automation
Industry Context
HP joins major tech companies—including Amazon, Microsoft, and Google—that have announced workforce reductions in 2025 as part of larger AI-driven realignments. The trend reflects accelerating pressure on legacy operational models as companies invest heavily in AI to boost productivity, streamline processes, and accelerate innovation cycles.
Financial and Performance Snapshot
HP’s most recent quarterly results exceeded expectations, with revenue reaching $14.6 billion and adjusted EPS of $0.93. However, its profit outlook for fiscal 2026—$2.90 to $3.20 EPS—came in below analyst forecasts, reinforcing the need for operational efficiency and strategic transformation.
Previously Announced Cuts
This restructuring follows an earlier phase in fiscal 2025, during which HP eliminated an additional 1,000 to 2,000 positions as part of its long-term modernization plan.
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