HP Inc. plans to lay off 4,000 to 6,000 employees by the end of 2028 as part of its aggressive artificial intelligence (AI) strategy. This measure is included in the company's broader "2026 Financial Plan," aimed at improving productivity, accelerating product innovation, and enhancing customer interaction through the introduction and strengthening of AI. This restructuring indicates that HP believes AI will fundamentally change its workforce structure, a trend closely watched by industry experts.

This layoff plan will affect multiple departments. HP CEO Enrique Lores stated that employees in areas such as product development, internal operations, and customer support will face job cuts. The company expects these measures to bring significant financial benefits, with annual cost savings of approximately $1 billion by the end of the 2028 fiscal year. However, the restructuring process itself will cost about $650 million, with an estimated $250 million expected to be spent in the 2026 fiscal year.

In terms of financial performance, HP's latest quarterly report shows that net income for the 2025 fiscal year was $55.3 billion, an increase of 3.2% compared to the previous year. Revenue in the fourth quarter reached $14.6 billion, exceeding analysts' expectations. Despite continued revenue growth, HP's profit forecast is below some analysts' expectations. The company expects adjusted earnings per share for the 2026 fiscal year to be between $2.90 and $3.20, slightly below the market average forecast of $3.33.

While actively promoting AI, HP also faces other market challenges. Rising prices for global memory chips, especially the surge in demand for DRAM and NAND chips, have led to cost pressures for consumer electronics manufacturers. HP expects to feel the impact of these price increases in the second half of the 2026 fiscal year. Lores mentioned that HP will adopt a cautious strategy for the second half of the market while implementing a series of measures, including reducing memory configurations and seeking more cost-effective suppliers.

As AI technology spreads, HP has gradually shown its emphasis on artificial intelligence in its products. In the fourth quarter ending October 31, AI-driven personal computer shipments accounted for more than 30% of its total shipments.

Key Points:

🌍 HP plans to lay off 4,000 to 6,000 employees by the end of 2028, aiming to improve productivity through AI.   

💰 The company expects the restructuring to bring annual savings of about $1 billion, but it will initially cost $650 million.   

📈 Although the financial report shows revenue growth, HP's profit forecast is below market expectations, facing the challenge of rising memory chip prices.