HP Cuts Up to 6,000 Jobs Globally by 2028 as AI Push and Rising Chip Costs Drive Major Restructuring
Summary
HP announces plans to eliminate up to 6,000 jobs worldwide by 2028 as the tech giant restructures operations to focus on artificial intelligence while combating rising memory chip costs that threaten profits, expecting $1 billion in savings from the major workforce reduction.
Key Points
- HP announces plans to cut between 4,000 and 6,000 jobs globally by fiscal 2028 as part of a streamlining initiative focused on AI adoption and operational efficiency
- The job cuts target product development, internal operations, and customer support teams, with HP expecting to generate $1 billion in gross savings over three years
- Rising memory chip prices driven by AI infrastructure demand threaten to pressure HP's profits in the second half of fiscal 2026, prompting the company to seek lower-cost suppliers and implement price increases