HP announces job cuts as profits miss estimate

HP Inc.gave a profit outlook for current year that fell short of estimates and the company said it will cut 4,000 to 6,000 employees through fiscal 2028 by using more AI tools.

- BY DINA BASS

HP INC., headquartered in Palo Alto, says it will cut up to 6,000 workers by using more artificial intelligence.

(JOSH EDELSON AFP/Getty Images)

The Palo Alto PC and printer maker will exit 2028 with gross savings of $1 billion annually as a result of the cuts. The savings will come from HP applying AI tools to areas like product development, customer support, sales and manufacturing, Chief Executive Enrique Lores said in an interview.

"It's something we have to do to make sure the company stays competitive," he said.

The cuts will result in about $650 million in restructuring charges, with about $250 million of that in fiscal 2026, which began Nov. 1, the company said Tuesday in a statement. The company's workforce was about 58,000 as of October 2024.