HP to lay off up to 6,000 employees in 3 departments by 2028
In a significant move to streamline its operations and adopt artificial intelligence (AI), tech giant HP has announced plans to lay off between 4,000 and 6,000 employees globally by fiscal 2028. This decision is part of the company’s efforts to transform its business and create a more efficient and agile organization. The layoffs will affect teams focused on product development, internal operations, and customer support, according to CEO Enrique Lores.
The move is expected to create $1 billion in gross run rate savings over three years, which will be invested in key areas such as AI, cybersecurity, and other emerging technologies. Lores stated that the initiative will enable HP to become a more nimble and responsive company, better equipped to meet the changing needs of its customers and stay ahead of the competition.
The layoffs will be implemented over the next three years, with the majority of job cuts expected to occur in the first two years. HP will provide severance packages and outplacement support to affected employees, as well as career transition services to help them navigate the job market.
The decision to lay off thousands of employees is a significant one, and it reflects the challenges facing the tech industry as a whole. With the rise of AI and automation, many companies are being forced to adapt and transform their businesses to remain competitive. HP is no exception, and the company is taking proactive steps to ensure its long-term success.
The impact of the layoffs will be felt across three main departments: product development, internal operations, and customer support. These areas will be streamlined and optimized to improve efficiency and reduce costs. The company will also invest in AI and machine learning to automate certain tasks and processes, freeing up resources for more strategic and creative work.
The move to adopt AI is a key part of HP’s strategy, and the company is committed to becoming a leader in this field. Lores stated that AI will play a crucial role in driving innovation and growth, and that HP is well-positioned to capitalize on this trend. The company is already investing in AI research and development, and it plans to expand its AI capabilities in the coming years.
The layoffs are also expected to have a significant impact on HP’s customer support operations. The company will be investing in AI-powered chatbots and other automated tools to improve customer service and reduce response times. This will enable HP to provide faster and more efficient support to its customers, while also reducing costs and improving overall satisfaction.
While the layoffs are undoubtedly a challenging and difficult decision, they are also a necessary step in HP’s transformation journey. The company is committed to creating a more agile and responsive organization, and it is taking proactive steps to ensure its long-term success.
In conclusion, HP’s decision to lay off up to 6,000 employees by 2028 is a significant move that reflects the company’s commitment to streamlining its operations and adopting AI. The layoffs will have a significant impact on three main departments, but they will also create $1 billion in gross run rate savings over three years. HP is well-positioned to capitalize on the trend of AI and automation, and the company is taking proactive steps to ensure its long-term success.
Source: https://www.reuters.com/business/hp-cut-about-6000-jobs-by-2028-ramps-up-ai-efforts-2025-11-25/
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