HP to Cut 4,000–6,000 Jobs by 2028 as AI Costs Rise and Market Pressures Grow

HP has announced new job cuts.

The company will remove 4,000 to 6,000 jobs by the end of 2028.

HP says the goal is to reduce costs and use AI to speed up work.

Why HP Is Cutting Jobs

HP’s CEO said many teams may be affected.

This includes product development, operations, and customer support.

HP wants to stay competitive as costs rise.

The company expects to save $1 billion in three years.

HP has cut jobs before.

Earlier this year, it removed 1,000–2,000 employees.

Three years ago, it also cut 4,000–6,000 jobs.

AI PCs Are Growing, But Costs Are High

More than 30% of HP’s PCs now have AI features.

These devices are becoming popular.

But memory chips are becoming expensive.

This is hurting HP’s profit margins.

To control costs, HP will:

Add new suppliers

Reduce memory where possible

Increase prices when needed

Diversify its supply chain

Impact on Earnings

HP expects yearly profit to be $2.90–$3.20 per share.

Q1 profit is expected to be 73–81 cents per share.

In Q4, HP earned $14.6 billion, slightly better than expected.

PC sales grew 8%.

Shifting Production Away From China

HP has moved most North American manufacturing out of China.

This helps avoid tariffs and supply chain risks.