HP Inc. Cuts 6,000 Jobs in Pivot to AI-Driven Hardware

HP Inc. is cutting up to 6,000 jobs as it shifts its focus to artificial intelligence and tries to save money. The PC maker announced the move on Tuesday, stating it will reduce its workforce by about 10% by 2028. The company plans to use the savings to pay for new AI technology in its personal computers. You can read the full report at CNN.

Key Facts

• The Numbers: HP will cut between 4,000 and 6,000 jobs over the next three years.
• The Cost: The company expects to spend $650 million on severance and other costs to make these cuts happen.
• The Goal: HP wants to save $1 billion a year by 2028 through this plan.
• Source: CNN, TechRepublic

The Agentic AI Plan

HP CEO Enrique Lores said the company needs to change how it works. He told investors that “agentic AI”—software that can act on its own—will replace many current tasks. The cuts will hit product development, customer support, and internal operations the hardest.

Lores said the company ran pilots for two years to see where AI could fit. Now, they are ready to redesign their whole process. This means fewer people handling support tickets and managing internal data. The company believes this will fix slow workflows and help them build products faster.

Rising Costs Pressure HP

The cuts are not just about AI. HP is also dealing with higher prices for computer parts. Memory chips are getting more expensive because data centers are buying them up for their own AI servers. This makes it harder for HP to make a profit on each PC it sells.

This is the second time HP has cut jobs this year. In February 2025, the company cut between 1,000 and 2,000 roles. Shareholders did not react well to the latest news, with HP stock dropping about 6% after the announcement.

The Long Road Ahead

This layoff plan is slow. It will take three years to finish. Most of the cuts will happen through 2028. This leaves many workers waiting to see if their jobs are safe. HP says the $1 billion in savings will go back into the business to help it compete with other tech giants who are also racing to build AI tools.