HP has announced it will cut between 4,000 and 6,000 jobs worldwide by the end of October 2028 as the firm increases its use of AI to advance product development.

The US-based computer and printer manufacturer currently employs around 58,000 people, reported CNBC.

Enrique Lores, CEO of HP, noted that the job reductions will impact teams across product development, internal operations, and customer support.

Lores said: “As we look ahead, we see a significant opportunity to embed AI into HP to accelerate product innovation, improve customer satisfaction and boost productivity.”

The company expects these changes will generate annual savings of $1bn by 2028 but anticipates spending approximately $650m on the restructuring process.

In February 2025, HP had laid off between 1,000 and 2,000 employees as part of an earlier restructuring plan.

The latest round of job cuts comes amid broader trends in automation and the use of AI across industries.

This announcement was made during HP’s release of a lower-than-expected profit outlook for the coming year.

In its latest financial statement, HP reported net revenue of $55.3bn for fiscal year 2025, marking a year-on-year increase of 3.2%.

Fourth-quarter net revenue reached $14.6bn, up 4.2% compared to the previous year.

Fiscal year GAAP diluted net earnings per share were $2.65 compared with $2.81 a year earlier, while non-GAAP diluted net earnings per share were $3.12 versus $3.43 previously.

In February 2025, HP signed a definitive agreement to acquire assets from Humane, the creator of the wearable AI Pin, for $116m.

Through the deal, HP gained Humane’s AI-powered platform, Cosmos, its intellectual property, and the majority of the startup’s employees.