US tech giant HP has announced plans to cut 4,000 to 6,000 jobs by the end of 2028 as part of its strategy to adopt artificial intelligence (AI) to boost productivity.
This reduction could account for just over 10% of the company’s workforce, which totals approximately 58,000 employees according to its latest annual report.
It marks one of the first instances where a major corporation has explicitly linked job cuts to the implementation of AI tools.
HP’s three-year plan aims to improve customer satisfaction, drive innovation, and enhance productivity through the adoption and deployment of artificial intelligence, the company stated in an announcement on Tuesday.
The initiative is expected to generate annual savings of about $1 billion by the end of 2028.
Restructuring costs tied to the plan are estimated to total $650 million, including $250 million designated for the fiscal year 2026, which runs from November to October.
HP was established in 2015 following the split of the historic Hewlett-Packard company, originally founded in 1939, during its restructuring phase.
At the time of the split, Hewlett-Packard concentrated its business-related software, infrastructure, and services operations into Hewlett Packard Enterprise (HPE), while its personal computer and printer divisions became HP.
Since the split a decade ago, HP’s revenue has increased by only 7%.
Many experts suggest that the widespread adoption of generative AI may lead to significant job losses, although some speculate that these changes may be offset by the creation of new roles and industries.
