Between 4,000 and 6,000 HP employees worldwide will lose their jobs by October 2028 as the computer and printer manufacturer pursues an aggressive artificial intelligence integration strategy. The restructuring affects roughly 7% to 11% of the company’s 56,000-person workforce and represents a significant bet on AI’s ability to transform business operations.
CEO Enrique Lores characterized the move as responding to a “significant opportunity” to embed AI throughout the organization. The technology will be deployed across product development, internal operations, and customer support, with the goal of accelerating innovation, improving customer satisfaction, and enhancing productivity. Financial projections indicate the changes will produce $1 billion in annual cost savings by 2028, though achieving this will require upfront spending of approximately $650 million.
The announcement comes amid broader concerns about AI’s impact on global employment markets. Educational research organizations warn that millions of low-skilled jobs could disappear in the coming decade due to automation and AI technologies. Positions in trades, machine operations, and administrative roles appear particularly vulnerable. Meanwhile, studies suggest that substantial percentages of work hours across sectors including education, healthcare, business, and legal services could be automated using technologies available today.
Specific job categories face varying levels of risk. Administrative and legal services show particular vulnerability, with tasks such as data entry, financial processing, and document drafting increasingly performed by AI systems. Similarly, dangerous physical work previously requiring human operators may be taken over by robots. However, experts note that human oversight, design, and verification will remain essential even in highly automated environments.
HP’s financial situation reflects competing pressures. Fourth-quarter revenues of $14.6 billion beat expectations, and AI-enabled PCs comprised over 30% of shipments. However, the profit outlook for the coming year disappointed analysts, with forecasts below expectations due to trade tariff costs and surging memory chip prices. These semiconductor components have become significantly more expensive as technology companies compete for supplies needed to build AI infrastructure. The workforce reduction news triggered a 6% decline in HP shares.