HP Plans Up to 10% Job Cuts to Accelerate AI Shift

HP will cut up to 10% of jobs amid an AI pivot, unveiling a multiyear plan on November 25, 2025 to streamline operations and push more aggressively into artificial intelligence across its PC and printing businesses.

What Happened

HP Inc. said it intends to reduce head count by 4,000 to 6,000 positions by fiscal 2028, touching teams in product development, internal operations, and customer support. The company framed the move as part of a broader effort to embed AI into how it designs products, serves customers, and runs the business. Management expects the restructuring to generate Target: $1 billion in annualized savings by the end of fiscal 2028 and estimates about $650 million in related charges, with roughly $250 million falling in fiscal 2026.

Why It Matters

The cuts underscore how legacy PC makers are reorganizing around AI-enabled devices and workflows. HP said AI-capable PCs represented more than 30% of its shipments in the quarter that ended October 31, a sign the upgrade cycle is beginning to take hold. At the same time, rising memory-chip costs could pressure margins next year, prompting HP to qualify lower-cost suppliers, tweak configurations, and consider price moves. The company also noted it trimmed 1,000 to 2,000 roles in February as part of earlier restructuring, suggesting a steady march toward a leaner, AI-centered operating model.

Market Reaction And Outlook

Investors took a cautious view. Following the announcement, shares fell about 5.5% after hours. HP guided to adjusted earnings of $2.90 to $3.20 per share for fiscal 2026, below the average analyst estimate, reflecting both the investment and cost backdrop the company is navigating. Management’s thesis: near-term disruption and charges should set up a more competitive cost base and faster product cycles as AI features become standard across PCs and services.

The restructuring will run through the end of fiscal 2028, with timing and scope varying by geography and business unit. For employees, the company said it will follow local processes and provide transition support where required. For customers and partners, HP emphasized that product roadmaps remain intact, with AI-enabled PCs and related services at the center of its strategy.

Sources

• HP to Cut Up to 10% of Workforce as Part of AI Push — Wall Street Journal (November 25, 2025)
• HP to cut about 6,000 jobs by 2028, ramps up AI efforts — Reuters (November 25, 2025)
• HP Inc. Reports Fiscal 2025 Full Year and Fourth Quarter Results — HP Newsroom (November 25, 2025)