HP to Cut Thousands of Jobs as AI Reshapes Workforce

AFP/APP

San Francisco: Computer and printer maker HP announced Tuesday a major restructuring plan that will cut about 10 percent of its global workforce as the company pivots toward artificial intelligence (AI) to boost efficiency.

The company expects to reduce its headcount by 4,000 to 6,000 employees worldwide, focusing on AI adoption to drive innovation and improve customer satisfaction, according to its latest earnings report.

HP’s decision reflects a broader tech sector trend, with companies like Google, Microsoft, and Amazon investing heavily in AI while reducing operational costs through workforce reductions.

Read More:https://thepenpk.com/huawei-unveils-open-source-tech-to-boost-ai-efficiency/

Industry analysts note that roles in customer support, content moderation, data entry, and certain programming tasks are particularly vulnerable to AI automation.

HP said its AI-driven strategy is projected to generate around $1 billion in annual savings by fiscal 2028. The company has also been reshaping its business model amid shifting demand in PC and printing markets.

CEO Enrique Lores told the Wall Street Journal that HP plans to raise computer prices and collaborate with new suppliers to offset higher AI computing costs.

In its latest quarter, HP posted a profit of $795 million, down from $906 million a year earlier. Revenue rose 4.2 percent to $14.64 billion, exceeding analyst estimates, with PC sales offsetting a decline in printer revenue.