HP to cut thousands of jobs due to AI adoption

26/11/2025 03:36 AST

Computer and printer maker HP announced Tuesday a sweeping restructuring plan that will eliminate about 10 percent of its workforce globally as the company pivots toward artificial intelligence to boost efficiency.

According to its latest earnings report, the tech giant expects to reduce its global headcount by between 4,000 and 6,000 employees to focus on adopting AI to increase innovation and customer satisfaction.

HP's move reflects a broader trend across the tech sector, where companies are investing heavily in AI development while using the technology to reduce operational costs.

Major tech firms including Google, Microsoft, and Amazon have announced workforce reductions over the past two years, with many citing the need to reallocate resources, including jobs, toward AI initiatives.

Industry analysts say AI automation is particularly affecting roles in customer support, content moderation, data entry, and certain computer programming tasks.

HP said its AI plan aims to generate approximately $1 billion in annual savings by the end of fiscal 2028.

The company has been working to transform its business model amid changing demand patterns in the PC and printing markets.

HP CEO Enrique Lores told the Wall Street Journal that the company plans to raise the prices of its computers and work with new suppliers to help offset the higher costs of AI computing.

In its latest quarter, HP posted a profit of $795 million, compared with $906 million a year earlier.

Revenue rose 4.2 percent to $14.64 billion, topping analyst estimates with sales in PCs offsetting a decline in printer sales.

AFP