San Francisco: Computer maker HP has announced plans to cut between 4,000 and 6,000 jobs worldwide over the next three years as it increases the use of artificial intelligence across its business.
The reductions, expected by the end of October 2028, come alongside a profit outlook that fell short of market expectations. The company currently employs about 56,000 people.
Chief executive Enrique Lores said the move is part of a broader push to reshape the company’s product development, operations, and customer support through AI-driven tools. He said this transition is expected to save HP around 1 billion dollars a year by 2028, though the restructuring will cost an estimated 650 million dollars.
HP’s announcement follows a growing trend across industries where companies are turning to automation to reduce costs. Earlier this year, HP cut up to 2,000 staff as part of its restructuring programme, and it now joins a list of firms that have cited new technologies when reducing their workforce.
The shift comes amid rising concerns about how automation will reshape jobs around the world. In the UK, the National Foundation for Educational Research warned that as many as 3 million low-skilled positions could disappear by 2035. Roles in trades, machine operations, and administration are among the most vulnerable.
In the US, a report from the McKinsey Global Institute says that roughly 40 percent of jobs could be automated, with AI agents capable of performing more than half of all work hours. The report suggests this could unlock nearly 3 trillion dollars in economic value by 2030.
Tasks such as data entry, financial processing and document drafting are seen as particularly at risk, although human oversight will remain essential. Physical and hazardous jobs may increasingly be handled by robots.
The trend has already begun to reshape company strategies. Law firm Clifford Chance recently cut around 50 business services roles, citing efficiency gains from new technology. PwC scaled back its plan to hire 100,000 people over five years, saying its staffing needs have shifted. Klarna, the buy now, pay later company, said savings from automation have allowed it to nearly halve its workforce in three years through natural attrition.
For HP, the demand for AI systems comes with added pressure. Data centres are competing for vast amounts of memory needed to power advanced models, pushing up costs for dynamic random-access memory and NAND chips.
Despite the headwinds, HP reported better-than-anticipated quarterly revenue of 14.6 billion dollars, with strong demand for AI-enabled PCs. These advanced machines made up more than 30 percent of HP’s shipments in the quarter ending 31 October.
