HP to lay off nearly 6,000 workers due to artificial intelligence

In a new financial report, HP estimates that restructuring costs will amount to approximately $650 million, of which about $250 million falls on the 2026 fiscal year. This is reported by Reuters.

HP's strategy is to "enhance customer satisfaction, product innovation, and productivity through the adoption and use of artificial intelligence," as well as to achieve cost savings through "headcount reductions, platform simplification, program consolidation, and productivity initiatives," as stated in the company's financial results presentation.

“Two years ago, we started doing pilots to see how AI could help us drive these things. We realized we had to start by redesigning the process. When we learn how to redesign a process with AI, using agent-based AI, it can have a really, really significant impact,” HP CEO Enrique Lores said during an earnings call.

The company already laid off 1,000 to 2,000 employees in February as part of a previously announced restructuring plan. The new wave of layoffs is expected to affect 4,000 to 6,000 specialists.

Similar processes have previously engulfed Oracle, which laid off thousands of people due to increased spending on AI. Cisco later became the latest tech giant to cut staff despite its CEO's statement that AI will not take jobs.

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