HP is going to lay off between 4,000 and 6,000 workers until its fiscal year 2028 as part of a plan to streamline its operations and adopt AI to accelerate product development and advance sales and manufacturing. Also to boost productivity and, according to Reuters, to improve customer satisfaction.
The teams most affected by the cuts will be those dedicated to product development, internal operations and customer service, as confirmed by the CEO of the company, Enrique Loreswhich also ensures that it is something necessary to remain competitive. With this measure they hope to cut $1 billion when the round of layoffs ends.
These layoffs follow a latest round of departures undertaken by HP last February, as part of a previous restructuring plan, and which affected between 1,000 and 2,000 workers. This in a scenario in which the demand for PCs prepared for AI continues to increase, and that according to data from the quarter that ended on October 31.
However, the pressure produced in the memory chip sector, especially RAM and NAND, due to the increase in demand from data centers can put equipment manufacturers in a complicated situation due to the increase in costs and the consequent adjustment in profits.
Lores has acknowledged that HP expects to feel the impact of this situation in the second half of fiscal year 2026, since at the moment they have enough inventory to cover their needs for the first half. Also that they are «taking a cautious approach to our second half guidance, while implementing aggressive measures such as supply cost reductions, memory configuration reductions and other pricing related measures«.
For him FY 2026, HP expects adjusted earnings per share between $2.90 and $3.20somewhat below the average analyst estimate, which is currently at $3.33. The company brought in $14.64 billion in the final quarter of its fiscal year 2025, which ended on October 31, exceeding expectations of $14.48 billion.
