HP has joined the growing list of tech giants announcing major job cuts under the banner of innovation. The company has confirmed that it plans to eliminate between 4,000 and 6,000 jobs by the end of the 2028 fiscal year.
This strategic move aims to redirect the company toward automation and artificial intelligence in an effort to regain competitiveness and improve profit margins.
The decision, revealed in its latest earnings report, has a clear financial goal — to save about $1 billion annually over the next three years. However, the transition won’t come cheap. HP estimates it will face around $650 million in restructuring costs, most of which will affect its 2026 accounts.
HP’s Plan to Embrace Automation
Enrique Lores, CEO of HP, explained that the company has been running pilot programs for two years to understand how AI can transform its operations. “What we have learned is that we need to start from redesigning the process,” said Lores.
The main focus is on so-called “agentic AI”, systems capable of acting and making decisions independently. According to company leadership, this will allow HP to integrate artificial intelligence into everything it does.
Analysts Question HP’s Real Motives
Although HP presents this move as a necessary step toward modernization, industry analysts see a familiar pattern.
Many large tech companies are using the AI transformation narrative to justify massive layoffs that actually correct over-hiring during the pandemic.
Companies such as Amazon, Meta, Cisco, and Microsoft have followed similar paths in recent months — announcing large investments in automation while reducing their workforce. This strategy allows corporations to frame job cuts as a push for “innovation” and “future efficiency” instead of admitting past planning mistakes.
With its stock falling more than 25% in 2025, HP seems to be looking at AI not only as a technology tool but also as a lifeline for its market value.
