HP to slash up to 6,000 jobs by 2028 as it doubles down on AI transformation
HP announced plans to cut 4,000–6,000 roles by the end of fiscal 2028 as part of a multi-year AI transformation aimed at redesigning processes, consolidating programs and achieving $1 billion in gross run-rate savings over three years.
- Scale of cuts: HP expects to eliminate 4,000–6,000 roles by fiscal 2028 — roughly up to about 10% of the workforce, according to market estimates.
- Cost and timing: Targeting $1 billion in gross run-rate savings over three years, with $650 million in restructuring costs (about $250 million booked in fiscal 2026).
- Focus areas: Product development, internal operations and customer support likely to see the biggest impact as HP redesigns processes before layering in AI.
- Market response: Shares fell about 5.5% in extended trading after the announcement.
Details of the announcement
Palo Alto-based HP Inc. said on Tuesday it will reduce its workforce by 4,000 to 6,000 employees by the end of fiscal 2028 as part of a broad artificial intelligence transformation. The company framed the restructuring as a necessary step to streamline operations and align with a market shifting toward AI-enabled devices.
Sources and reporting
Key reporting on the announcement is available from Fox9 and American Bazaar Online. Market observers citing Stock Analysis estimate the cuts could be as much as about 10% of HP’s workforce.
Why HP is making sweeping cuts now
HP’s leadership said the move responds to rapid change in the AI-powered devices market and ongoing margin pressures. CEO Enrique Lores said the initiative is expected to “create $1 billion in gross run rate savings over three years.”
“What we have learned is that we need to start from redesigning the process, and once we know how the process could be redone using AI, using agenetic AI, it can really have a very significant impact,” — Enrique Lores.
HP has been piloting AI programs for about two years and says pilots showed potential but also the need to rethink processes before broad AI deployment. Executives plan to redesign operations, consolidate programs and then layer in AI to automate or augment routine tasks.
Financial plan and projected costs
HP outlined a multi-year plan that pairs near-term costs with longer-term savings: an expected $650 million in restructuring costs to generate $1 billion in gross run-rate savings by fiscal 2028. About $250 million of those restructuring charges are expected in fiscal 2026, creating upfront pressure on earnings.
The company previously cut 1,000–2,000 jobs in February 2025; combined, the moves signal an escalation in HP’s restructuring as it redirects investment toward AI-enabled products and services.
Which teams will be hit
HP said reductions will span multiple departments. The company identified product development, internal operations and customer support as likely to see the most change. The planned approach: (1) consolidate overlapping programs, then (2) redesign processes so AI can replace routine work or increase productivity.
HP also noted that more than 30% of its PC shipments in the quarter ending Oct. 31 were AI-enabled devices, underscoring the strategic urgency behind the shift.
Market reaction and operational risks
Investors reacted quickly, with shares falling roughly 5.5% in after-hours trading. Analysts highlighted two near-term risks: the immediate earnings hit from restructuring costs and potential exposure to rising memory-chip prices tied to data center demand — a factor that could raise component costs into fiscal 2026.
HP’s earnings guide showed adjusted first-quarter EPS between $0.73 and $0.81, with the midpoint below some analysts’ expectations and amplifying investor concern that cost cuts alone may not offset margin pressures.
Context: a wider wave of corporate layoffs
HP’s announcement comes amid broader workforce reductions across major firms in 2025, including Amazon (about 14,000 corporate roles), Paramount (about 1,000 jobs), and Molson Coors (about 400). Companies cite slower growth, inflationary pressures, automation and shifting demand as drivers of restructuring.
A key open question is how much of the displaced work will be automated versus retrained. Management emphasizes redesigning processes first, then applying AI — but labor advocates warn that large automation projects often fail to translate into large-scale re-skilling for displaced workers.
Implications for Las Vegas, Nevada
Economic impact
Las Vegas hosts a growing tech footprint that includes corporate offices, vendors and contractors. Even if HP’s direct layoffs are concentrated elsewhere, local service providers, call centers or repair shops that contract with national firms could see lower volume. Reduced demand may affect legal, recruiting and consulting services tied to tech clients.
Political consequences
Local leaders focusing on economic diversification may use this moment to push for accelerated workforce training, incentives for diversified employers, or policies that support rapid re-employment. The announcement strengthens calls to expand retraining and small-business support.
Social effects and practical advice
Displaced workers and contractors in the Las Vegas area could face reduced opportunities. Community groups and workforce centers may see increased demand for placement and retraining services. Practical steps for residents:
- Job seekers: Update resumes, pursue retraining in AI, cloud services or IT support, and contact Nevada workforce resources.
- Small businesses: Assess exposure to contract losses and diversify client bases.
- Policymakers: Accelerate partnerships with community colleges and workforce boards for short-term certificates in cloud operations, AI support and cybersecurity.
What this means for the AI-powered devices market
HP’s moves indicate a bet that demand for AI-enabled PCs and printers will continue to grow and that early positioning in AI product development can be a competitive advantage. The outcome depends on execution: integrating AI into products, managing component-cost pressure (notably memory pricing), and sustaining customer support during restructuring.
Reporting notes and sources
This article draws on company statements and reporting from outlets covering HP’s announcement and financial outlook. Key sources include Fox9 and American Bazaar Online. Market summaries referenced projections from Stock Analysis suggesting the cuts could represent up to about 10% of HP’s workforce.
Additional reporting steps for readers
Local readers seeking support can consult Nevada’s Department of Employment, Training and Rehabilitation and local workforce development centers for unemployment benefits, retraining and job-placement resources. Community colleges in the Las Vegas area offer certificate programs that can help transition workers into AI-related or other high-demand fields.
