tech
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 the end of fiscal 2028.
- The company expects to save $1 billion in annualized gross run rate through these layoffs and AI deployments.
- Affected areas include product development, internal operations, and customer support.
- HP CEO Enrique Lores stated AI will accelerate innovation, improve customer satisfaction, and boost productivity.
- The announcement is part of a larger trend of tech companies linking layoffs to AI investments, citing examples like Salesforce, Amazon, and Meta.
- Some experts question whether AI is the direct cause of layoffs or a scapegoat, noting the complexity and time required for AI to replace human workers.
- Analysis shows a significant increase in technology job cuts year-over-year.
- There is also a broader hope that AI will ultimately create more jobs than it eliminates.