HP Layoffs News: HP has once again announced major layoffs. The company will eliminate 4000 to 6000 jobs by 2028. Know the reason for cutting such a large number of jobs and how and why HP is changing its business model.
HP Globa Layoff 2025: The world’s famous tech company HP Inc has once again announced mass layoffs. The company has said that it will cut 4000 to 6000 jobs from its global workforce by fiscal 2028. HP claims that this step is necessary to simplify its operations, reduce costs and make work faster and smarter with the help of AI. Let us tell you that this time’s layoff is not just a general cost cutting, but HP is completely turning towards AI driven technology and smart PC market. Know why HP is again doing layoffs on such a large scale and how it will affect the company.
Why the HP layoffs? The company itself gave 5 big reasons
HP CEO Enrique Lores clearly said that in the coming time the company will have to reduce the number of employees in many departments. Which includes product development, internal operations, customer support department. The company says that HP had to take a big step to keep itself competitive. Lores says that this plan will save HP 1 billion dollars (about Rs 8,300 crore) in the coming three years. If we talk about the five major reasons for retrenchment, these include-
- AI and Automation: With the advent of AI, many old tasks can be done by machines and tools, hence the need for employees has reduced.
- Expensive memory chips and technology: The cost of operation has become higher due to the increase in the price of high-end chips.
- Increase in operation costs: Expenses on product development, internal operations and customer support have become higher than before.
- Tough Market Competition: It is necessary to reduce costs to compete with companies like Dell, Acer.
- Savings of $1 billion in three years: Through re-structuring the company wants to control expenses for the future.
Third layoff in HP in three years
HP has been continuously rightsizing for the last few years. 4,000–6,000 jobs were cut in 2022–23, saving $2.2 billion. 1,000-2,000 employees to be laid off as early as 2024. Now there is a plan to make 4,000-6,000 new layoffs by 2028. Let us tell you that by the end of 2024, HP had 58,000 employees left. The new plan is expected to cost the company about $650 million, of which $250 million will come in 2026 alone.
Demand for AI PC increased, but cost increased tension
HP’s Q4 (July-October) was strong largely due to AI powered PCs. More than 30% of HP’s PC shipments are now AI enabled. Windows 11 upgrade and AI features boosted PC division sales by 8%. But the real problem is that memory chips have become very expensive and this is due to the increasing demand for AI data centers. Big analysts like Morgan Stanley had already warned that this would have a big impact on the margins of companies like HP, Dell and Acer. That’s why HP is now adding more suppliers. Reducing memory where it is not necessary. It is increasing the prices of some products and diversifying the supply chain more.
Manufacturing removed from China, supply chain changed
HP has moved almost all manufacturing for the US out of China to avoid the huge impact of tariffs. Now the company is rapidly making its supply chain more flexible and according to the local market for AI-powered PCs and new technology.
Read this also- Biggest layoff ever in Verizon: 13000 employees will be out due to new policy of new CEO
Wave of layoffs continues in tech sector
HP is not the only company to lay off large numbers. Earlier, Apple laid off dozens of employees in many countries. Amazon is cutting 14,000 jobs, having already cut 30,000 jobs since the pandemic hit. Meta has also laid off hundreds of people from AI teams. After the arrival of AI in the tech sector, the trend of getting more work done with fewer employees is increasing rapidly.
Read this also- Amazon India Layoffs 2025: Preparation for layoffs again in Amazon India, jobs of 1000 employees at risk