HP announced on Tuesday that it plans to lay off between 4,000 and 6,000 employees globally by fiscal 2028, as part of a plan to simplify its operations and accelerate the adoption of artificial intelligence.
HP teams dedicated to product development, internal operations and customer support will be impacted by the cuts, Chief Executive Enrique Lores told reporters.
“We expect this initiative to generate gross savings of US$1 billion in three years,” added Lores.
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In February, the company had already laid off between 1,000 and 2,000 employees, as part of a previously announced restructuring plan.
Demand for PCs with artificial intelligence continues to grow, accounting for more than 30% of HP’s sales in the fourth quarter ended October 31.
For fiscal 2026, HP projects adjusted earnings per share of between $2.90 and $3.20, below analysts’ average estimate of $3.33, according to data compiled by LSEG.
In the fiscal first quarter, the company expects adjusted earnings per share between 73 and 81 cents, with the midpoint falling below estimates of 79 cents.
Revenue for the fourth quarter was US$14.64 billion, exceeding the market’s average estimate, which was US$14.48 billion.
