Emerging from the shadows to join the trend of AI-motivated restructuring, HP has announced its own plans for mass layoffs. The HP employee cuts announced in 2025 aren’t expected to unfold solely in the next month, but are instead a part of the company’s plans to restructure the business by fiscal year 2028. As a result of the cuts, the PC maker is looking to eliminate between 4,000 to 6,000 employees across its global operations. Analyst estimates suggest these cuts will affect between 7% to 10% of its workforce.
The emerging reports indicate that the cuts aren’t merely about streamlining operations but also set the stage for AI investments. This is expected to help it add more pathways for performance efficiency in its product and service lines.
HP layoffs announced in Thanksgiving week as the company sets itself on track towards a multi-year restructuring strategy. (Image: Pexels)
HP Layoffs Announced As the PC Maker Turns Its Attention to AI-Powered Productivity
HP is all set to slash jobs across multiple operations, with teams focused on product development, internal operations, and customer support, at the center of the layoffs, according to CEO Enrique Lores. Between 4,000 to 6,000 employees will be caught in the crossfire as the HP workforce reductions begin, but no set timelines have been provided for when the layoffs will actually be conducted.
The organization is hoping to target a fiscal 2028 deadline to complete the cuts, with the businesses aimed at creating “$1 billion in gross run rate savings over three years.” To execute this change across its workforce, the company is expected to spend $650 million on restructuring expenses, of which $250 million will be accrued in 2026. The goal behind HP’s layoffs is straightforward, directed towards driving “customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement.”
The latest round of job cuts is set to occur on a much larger scale than HP’s previous round of employee cuts in February 2025, where 1,000 to 2,000 employees were let go. However, it is important to note that those cuts were also the final part of another multi-year restructuring initiative that had already considerably downsized the company’s ranks. The news is understandably disheartening, and CEO Lores acknowledged the impact on employees, adding that the company will continue to treat its outgoing employees with “care and respect.”
Artificial Intelligence Continues to Redefine the Future of Employment
HP isn’t the first business to invest in celebrating AI, and it likely won’t be the last. Other top tech giants have already restructured their businesses to accommodate the technology, whether in terms of introducing AI tools or AI workers. Microsoft’s latest Agent 365 offering was recently released to simplify the deployment and management of AI agents for any businesses that want to experiment with the possibilities, and it stands as one of the many ways that organizations are approaching artificial intelligence.
Over the last few months, experts and the general public have both begun to question whether AI tools can truly reinvent the workplace to the degree that many CEOs claim. The HP layoffs indicate that the business is certain that it can be revived via AI, with CEO Lores reassuring his team that the company’s successful AI pilots have already proven its capabilities. Talking to analysts, the CEO added, “We have a significant opportunity to embed AI in everything we do and transform the company.”
The explanation suggests that not only is HP hoping to reduce its headcount and replace them with more efficient systems, but also to embed the technology in its products and services more thoroughly. This isn’t a surprising direction for the business. Devices with AI capabilities are all the rage at the moment, and could help HP shine brighter in the modern world.
The Conversation Around the HP Layoffs Continues
There are some who wonder whether HP’s decision to slash jobs is tied to the US tariffs, but the company hasn’t made any such claims just yet. HP is also receiving considerable criticism for announcing the layoffs during Thanksgiving week, right as employees get set to celebrate the holiday season. Some might suggest that there is never a “right” time for the layoff announcement, but the criticism is to be expected.
With the dire job market and multiple reports of job cuts across industries, employees who make the most of this brief period of cheer will likely be severely affected by the news, even if the layoffs don’t ultimately unfold over the next few weeks. Timing is everything, and businesses know it, as it is the primary reason many are hoping to integrate AI into their operations before they miss the promised benefits by holding off for too long.
While HP may have aligned the timing of its layoff announcement with its earnings call, the decision to lead with grim tidings is an unfortunate one. Shares of the company reportedly fell 6% in extended trading following the announcement, but it’s too soon to predict how the company’s restructuring ambitions will pan out.
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