tech
December 3, 2025
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 fiscal 2028.
- The company expects to save $1 billion in annualized gross run rate through AI deployments.
- Layoffs will primarily affect product development, internal operations, and customer support.
- HP CEO Enrique Lores stated AI will improve product innovation, customer satisfaction, and productivity.
- The announcement occurs amidst a broader trend of tech layoffs linked to AI investments.
- Examples include Salesforce, Amazon, Intuit, Klarna, Duolingo, and Meta announcing job cuts potentially related to AI.
- Technology firms have announced 141,159 job cuts in the current year as of October, a 17% increase from last year.
- Some experts, like Peter Cappelli, question the extent to which AI is currently driving layoffs.
- Gartner predicts all IT work will involve AI by 2030, but humans will remain essential.
- The World Economic Forum predicts AI will create 78 million more jobs than it eliminates by 2030.
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