HP to Undergo Major Restructuring with 6,000 Layoffs

AI-Driven Transformation

HP Inc., a leading technology company, has announced plans to lay off between 4,000 to 6,000 employees worldwide as part of a comprehensive restructuring program. The layoffs are expected to be implemented by 2028 and are designed to streamline operations while focusing on the integration of artificial intelligence (AI) in their business processes.

Strategic Objectives

The restructuring aims to accelerate product development, enhance customer satisfaction, and boost productivity through the adoption of AI technologies. According to HP's CEO, Enrique Lores, this initiative is expected to yield gross savings of US$1 billion over the next three years. The decision reflects the company's strategic shift towards leveraging AI to drive innovation and operational efficiency.

Impact on Workforce

The layoffs will primarily affect teams involved in product development, internal operations, and customer support. While the exact timeline and distribution of layoffs across different regions have not been detailed, the global nature of the restructuring indicates a significant transformation within the organization.

Industry Context

This move by HP aligns with the broader industry trend of technology companies investing heavily in AI and automation. As firms seek to remain competitive, restructuring efforts like HP's are becoming increasingly common, balancing workforce optimization with technological advancement.