HP launches a restructuring plan to streamline operations and manage rising AI computing costs.
The company said it will cut 4,000 to 6,000 jobs globally by fiscal 2028 as part of the multi-year restructuring effort. The plan aims to adopt AI across product development, customer operations and internal workflows to improve efficiency.
CEO Enrique Lores said that the company will increase computer prices and expand its supplier network to manage the higher cost of AI computing hardware. Teams in product development, customer support and internal operations will be the most affected.
Shares fell 5.5 percent in extended trading after the announcement. HP previously cut up to 2,000 employees in February under an earlier restructuring phase.
Demand for AI – enabled PCs has grown steadily, accounting for more than 30 percent of HP’s shipments in the fourth quarter ended on Oct 31.
The cuts mark one of the largest workforce reductions in recent years. Rising memory chips costs and intense competition for AI infrastructure pressurises the companies like HP to increase the costs of computers as demand from the data centre continues to surge.
Analysts warn that higher prices for NAND and DRAM memory could possibly affect profits across the PC sector. HP expects the financial impact to deepen in the second half of the fiscal year 2026 but plans to qualify lower – costs suppliers and adjust pricing.
