HP to cut up to 6,000 jobs by 2028 as it pivots to AI, seeks $1 billion in savings — HP job cuts 2028 signal wider tech industry layoffs
HP will cut 4,000–6,000 jobs globally by fiscal 2028 as it pivots to artificial intelligence, aiming to save about $1 billion over three years while reshaping product development, operations and support roles and accelerating AI investments.
- Scope: HP plans to cut 4,000–6,000 roles worldwide by fiscal 2028 as part of a restructuring tied to its AI plans — American Bazaar Online and announcement coverage on YouTube.
- Savings target: The program is projected to deliver roughly $1 billion in gross run-rate savings over three years — a mix of labor reductions and other efficiency moves (American Bazaar Online).
- Affected areas: Cuts will largely target product development, internal operations and customer support teams as HP automates and embeds AI across its businesses (American Bazaar Online).
- Context: This follows earlier cuts in February 2025 that trimmed 1,000–2,000 roles, and mirrors tech-sector shifts toward AI and automation (American Bazaar Online).
What HP announced and why
HP’s leadership described the move as a strategic retooling to compete in a market dominated by AI-enabled products and services. CEO Enrique Lores said the restructuring is intended to streamline operations, speed product development, improve customer satisfaction and raise productivity by embedding AI across HP’s PC and printing businesses. (Source: American Bazaar Online; YouTube.)
HP framed the plan as phased through fiscal 2028, allowing time to reassign work, invest in AI tools and implement automation while pursuing the targeted $1 billion in gross run-rate savings within three years.
Which jobs and functions are at risk
The company said reductions will primarily affect teams in product development, internal operations and customer support. That points to roles tied to traditional engineering workflows, back-office processes and contact-center functions being most vulnerable as automation and AI-driven tools replace or augment those tasks. Regional breakdowns were not provided in the initial announcement. (American Bazaar Online.)
Financial picture and near-term guidance
HP projects adjusted earnings per share of $0.73 to $0.81 for the upcoming quarter, with the midpoint below analyst expectations. Management warned that rising input costs — especially memory chips driven by data-center demand — could pressure margins in the second half of fiscal 2026.
To mitigate margin pressure, HP said it has sufficient inventory for the first half of the year and is taking cost-management steps including qualifying lower-cost suppliers, reducing memory configuration options and modest price increases. (American Bazaar Online.)
Market drivers: AI demand and component costs
Demand for AI-capable devices is growing rapidly — HP reported that more than 30% of its PC shipments in the fourth quarter ended Oct. 31, 2025 were AI-capable devices. That shift forces investment in software, specialized chips and support even as hardware margins tighten. Concurrently, analysts at Morgan Stanley pointed to a global surge in memory chip prices due to data-center demand, a trend that could compress margins for hardware makers including HP, Dell and Acer. (American Bazaar Online.)
Broader trend: tech industry layoffs
HP’s announcement is part of a wider pattern of workforce reductions across the tech sector as firms reallocate resources toward AI, cloud infrastructure and automation. Major employers, including Amazon, Microsoft, Google and Apple, have trimmed roles this year. Amazon, for example, cut roughly 14,000 corporate jobs earlier in 2025 — a sign of structural change as companies shift headcount toward AI and data services while scaling back legacy roles. (YouTube; American Bazaar Online.)
Implementation and what’s unclear
HP has not published a detailed timeline for notifications, severance, transition support or country-level impacts. The company said the plan is global and phased through fiscal 2028, but specifics on local office effects remain limited. Labor groups, suppliers and local governments are likely to seek greater transparency as the process proceeds. (American Bazaar Online.)
Implications for Los Angeles, California
Economic impact: Though HP is headquartered in Palo Alto, cuts of this scale can ripple across regions. Los Angeles-area channel partners, retail outlets, repair shops and distributors may face reduced sales if HP scales back customer support or field teams, affecting small-business revenue and hiring in connected sectors.
Labor market and workers: LA’s broad tech workforce — sales, customer support, engineering and supply-chain roles — could see increased uncertainty. Displaced workers are likely to seek retraining in AI tools, cloud platforms and software engineering; local community colleges and bootcamps could see heightened demand.
Local business and real estate: Reduced regional tech payrolls may lower demand for nearby services and office-space needs in dense tech neighborhoods, though LA’s diverse economy (media, entertainment, logistics) means effects will be uneven.
Practical steps for affected Angelenos
- Document roles: Keep records of job responsibilities, projects and contacts.
- Ask HR: Seek details on severance, outplacement and retraining funds.
- Use state resources: Tap the California Employment Development Department (EDD) and local job centers for job-search help and benefits.
- Reskill: Consider accelerated programs in AI tooling, cloud platforms and software development via community colleges and nonprofit bootcamps.
Policy and political consequences
Local officials and voters will scrutinize how corporate restructuring balances shareholder returns with worker protections. City and state leaders may press for transparency on where layoffs occur and whether severance dollars support local retraining. The announcement could renew calls for stronger safety nets around job dislocation as automation and AI reshape employment.
Sources and further reading
- American Bazaar Online: HP to cut about 6,000 jobs by 2028 as it increases AI efforts
- News clip (YouTube): announcement coverage and CEO remarks
“We are reshaping HP to compete in an AI-first world,” — Enrique Lores, CEO (coverage available on YouTube).
