Computer and printer giant HP Inc. announced a sweeping restructuring plan on Tuesday that will reduce its global workforce by about 10 percent, or between 4,000 and 6,000 employees, as the company pivots toward artificial intelligence (AI) to drive efficiency and innovation.
The move aligns with a broader trend in the tech industry, where firms such as Google, Microsoft, and Amazon have also cut jobs in recent years while reallocating resources toward AI initiatives. Analysts note that automation is increasingly impacting roles in customer support, content moderation, data entry, and certain programming tasks.
HP said its AI-driven transformation aims to generate approximately $1 billion in annual savings by fiscal 2028, while reshaping its business model to adapt to shifting demand in the PC and printing markets.
CEO Enrique Lores told the Wall Street Journal that the company plans to raise computer prices and partner with new suppliers to offset the rising costs of AI computing.
In its latest quarterly earnings, HP reported a profit of $795 million, down from $906 million a year earlier. Revenue, however, rose 4.2 percent to $14.64 billion, beating analyst expectations, with stronger PC sales compensating for weaker printer demand.
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