economy
HP plans to save millions by laying off thousands, ramping up AI use
Product development, internal operations among teams expected to be hit hardest.
TL;DR
- HP Inc. will lay off 4,000 to 6,000 employees by fiscal 2028.
- The company aims to save $1 billion in annualized gross run rate through AI deployments and workforce reductions.
- Layoffs will impact product development, internal operations, and customer support.
- HP CEO Enrique Lores stated AI will accelerate product innovation, improve customer satisfaction, and boost productivity.
- This announcement follows similar tech layoffs at companies like Salesforce, Amazon, Intuit, Klarna, Duolingo, and Meta, often linked to AI adoption.
- Analysis shows a significant increase in tech job cuts in the current year compared to the previous year.
- Some experts question whether AI is truly driving layoffs or being used as a scapegoat, noting the complexity of replacing human workers with AI.
- Gartner predicts all IT work will involve AI by 2030, but humans will remain essential.
- The World Economic Forum predicts AI will create more jobs than it eliminates by 2030.