HP Inc has announced a sweeping restructuring programme that will eliminate between 4,000 and 6,000 positions worldwide by the end of fiscal 2028, representing up to 10 per cent of its current 58,000-strong workforce, as the company aggressively pivots resources toward artificial intelligence integration and operational efficiency.

Chief Executive Enrique Lores confirmed that the cuts will primarily affect teams in product development, internal operations, and customer support, with the initiative expected to generate $1 billion in gross annual run-rate savings over three years while incurring approximately $650 million in restructuring charges, including $250 million in the current fiscal year that began November 1.

The move marks the second major workforce reduction in recent years—following a previous programme that eliminated a similar number of roles—and comes as HP accelerates its transition into an AI-driven future, with AI-enabled personal computers already accounting for more than 30 per cent of fourth-quarter shipments amid surging consumer and enterprise demand for next-generation devices.

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Despite reporting a solid 4.2 per cent year-on-year revenue increase to $14.6 billion and beating analyst expectations in its fiscal fourth quarter ended October 31, HP cautioned that soaring global memory chip prices—driven by data centre demand—are creating significant cost pressures, prompting the company to diversify suppliers, reduce memory configurations where possible, and implement selective price adjustments in the second half of the year.

As the broader technology sector continues its post-pandemic recalibration—evidenced by Amazon’s ongoing elimination of over 14,000 managerial roles and Meta’s targeted reductions in AI teams—HP’s latest measures underscore a relentless industry-wide push to streamline operations, redirect capital toward artificial intelligence innovation, and remain competitive in an era of rapidly evolving hardware requirements and geopolitical supply-chain challenges.

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