HP to Cut Up to 6,000 Jobs by 2028 in Push to Speed AI Adoption, Aiming for $1 Billion in Savings
HP announced a global restructuring that will cut 4,000–6,000 jobs by fiscal 2028 to accelerate AI-first products and data-center growth, with CEO Enrique Lores targeting roughly $1 billion in gross run-rate savings while tightening near-term cost controls.
Key takeaways
- Scale of cuts: HP plans to eliminate 4,000–6,000 global positions by fiscal 2028 (HP job cuts 2028).
- Savings goal: Management expects approximately $1 billion in gross run-rate savings over three years.
- Focus areas: Reductions concentrated in product development, internal operations and customer support as HP pivots to AI-enabled devices and data-center work.
- Near-term headwinds: Rising memory-chip and component costs may pressure results through fiscal 2026; HP is qualifying lower-cost suppliers and adjusting configurations and pricing.
Main content
Key information
Company: HP Inc., the Palo Alto–based technology maker.
Job cuts: 4,000–6,000 global positions by fiscal 2028 (HP job cuts 2028).
Savings target: About $1 billion in gross run-rate savings over three years.
Affected areas: Product development, internal operations and customer support functions — the company said reductions will be concentrated in these areas.
Why HP is restructuring
HP says the restructuring is intended to speed product development, improve customer satisfaction and boost productivity as the company pivots to AI-first products. CEO Enrique Lores framed the cuts as a strategic reallocation of resources toward AI capabilities and data-center operations, which HP views as priority growth areas.
“The plan reallocates focus and resources toward AI-enabled offerings and data-center services while tightening the cost structure to sustain investment,” HP officials told reporters at a briefing.
Financial targets and near-term outlook
HP projects the restructuring will deliver roughly $1 billion in gross run-rate savings over the next three years. The company also warned of near-term cost pressures from rising memory-chip prices and other component costs that are expected to show up in the second half of fiscal 2026.
To offset cost increases, HP is qualifying lower-cost suppliers, reducing memory configurations on some products and implementing price increases where needed. Management noted demand for AI-enabled PCs is rising quickly: in the quarter ended Oct. 31, AI-capable machines accounted for more than 30% of shipments.
Despite momentum in AI-capable device demand, adjusted EPS guidance for the coming quarter ranges from $0.73 to $0.81, with the midpoint slightly below analyst expectations — signaling that short-term cost pressures may outpace sales gains.
Wider industry context: AI, automation and tech industry layoffs
HP’s announcement follows earlier job reductions in February 2025, when the company cut between 1,000 and 2,000 roles as part of prior restructuring. The latest move mirrors similar shifts at other major technology firms reallocating investment toward AI and automation; analysts say these waves reflect structural change across the sector rather than purely short-term cost cutting.
For broader industry perspective and reporting on AI-driven workforce change and layoffs, see the industry overview video on AI-driven workforce change and tech industry layoffs.
Unanswered questions and investor concerns
The announcement leaves key items unresolved for employees and investors:
- Timing and locations: HP set a firm end date of fiscal 2028 but has not published a phased timeline or regional breakdown for the HP job cuts 2028.
- Severance and support: Public details on severance packages, outplacement help and retraining offers remain limited.
- Workforce percentage: Observers estimate the cuts could approach a material share of HP’s global workforce; some commentary has pegged the figure near 10%, though HP has not confirmed that percentage.
These open questions increase pressure on management to show how the company will protect long-term innovation while reducing headcount. Investors will scrutinize upcoming quarterly results for evidence that the planned savings materialize without damaging product road maps.
Impact on customers, partners and suppliers
HP’s shift to AI-enabled devices and data-center operations will change spending and procurement patterns. The company already plans supply-chain moves, including qualifying lower-cost memory suppliers, which could affect suppliers and partners that depend on higher-margin configurations.
Smaller hardware and component vendors, local value-added resellers and service providers that support HP’s enterprise and consumer clients may face ripple effects as HP tightens configurations and seeks cost savings.
Implications for Huntington Beach, California
Economic impact
- Local workers: Some Huntington Beach residents work remotely for HP, are partnered with HP employees, or are employed by suppliers; reductions could reduce household income and local consumer spending.
- Small business ripple: Reduced paychecks can pressure restaurants, retail and service businesses along Bolsa Chica and Main Street corridors.
Political consequences
- Local leadership: City officials should press for clear information and coordinate with county workforce boards to protect jobs and support affected families.
- Policy focus: The cuts highlight the need for workforce development aligning community-college programs and trade training with employer demand; public-private partnerships and employer-led apprenticeships can be effective.
Social effects
- Community services: Higher unemployment claims could strain county services; nonprofits and faith groups will likely play a role in short-term assistance.
- Family stress: Job loss increases demand for school and counseling services as households and children cope with disruption.
Cultural relevance and local values
Huntington Beach values entrepreneurship, self-reliance and small businesses. The restructuring presents an opportunity for local leaders to promote entrepreneurship programs and small-business grants that align with community values. Community colleges — for example, Golden West College and Coastline Community College — can expand targeted programs in cloud computing, AI support services and advanced manufacturing.
Practical steps for residents and local leaders
- Job support: Coordinate immediately with Orange County One-Stop Career Centers and local colleges for job fairs, resume workshops and retraining in in-demand tech and skilled trades.
- Business outreach: City leaders should engage HP and regional employers to identify near-term hiring needs and request details on severance, timelines and retraining commitments.
- Private-sector solutions: Expand mentorship and microloan programs through local chambers and conservative business groups to help displaced workers start small businesses or transition to contract work.
Sources and further reading
- American Bazaar Online: “HP to cut about 6,000 jobs by 2028 as it increases AI efforts.”
- Industry overview video on AI-driven workforce change and tech industry layoffs
This reporting is based on HP’s public announcement and comments at a media briefing, plus industry analysis of AI-driven restructuring in the technology sector. All facts, figures and source URLs are preserved above.
