HP announces plan to reduce workforce by 4,000-6,000 jobs globally

HP Inc announced its plan to reduce the workforce by between 4,000 and 6,000 jobs worldwide by the end of fiscal 2028.

This will be as part of the company’s efforts to streamline operations and utilise artificial intelligence (AI) to accelerate product development, enhance customer satisfaction and boost productivity.

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The teams expected to be impacted include those focused on product development, internal operations and customer support, reports said quoting chief executive officer Enrique Lores.

“We expect this initiative will create $1 billion in gross run rate savings over three years. It’s something we have to do to make sure the company stays competitive,” the CEO said.

“The cuts will lead to about $650 million in restructuring charges, including about $250 million in fiscal 2026, which began on November 1,” the company said.

HP had about 58,000 employees as of October 2024, Bloomberg reported.

“For the second half, we are taking a prudent approach to our guide, while at the same time we’re implementing aggressive actions,” Lores said.

These steps include adding more memory suppliers, reducing memory in products where customers do not require it and raising prices when necessary.

Notably, earlier this year, HP laid off 1,000 to 2,000 employees as part of a previously announced restructuring plan. Nearly three years ago, the company had unveiled a different cost-cutting programme aimed at reducing 4,000 to 6,000 jobs.

At the time, the company employed 61,000 workers and said that the plan resulted in gross savings of 2.2 billion.