Athira Sethu
Kochi, 26 Nov 2025
HP Inc. announced Tuesday it would lay off between 4,000 to 6,000 jobs globally from its workforce before the end of fiscal year 2028. The company said this action was part of a plan to smooth its operations and make greater use of artificial intelligence. HP wants AI to help the company develop its products more quickly, serve customers better, and boost general productivity.
Following this announcement, HP’s stock declined 5.5% in after-hours trading. The Palo Alto, California-based company will lay off workers from teams working on product development, internal processes, and customer support, according to CEO Enrique Lores, who disclosed the plan during a media call.
He further added that HP expects this restructuring plan to save the company about 1 billion dollars over the next three years. This new round of layoff announcements comes after HP had already cut another 1,000 to 2,000 jobs back in February as part of an earlier plan.
HP also said that the demand for AI-powered computers is continuing to rise. More than 30% of HP’s total PC shipments were AI-enabled devices during the fourth quarter that ended October 31. This exhibits that AI-based technology is going to be a huge part of HP’s future strategy.
But the company is not without its challenges. The prices of memory chips used in computers and servers are increasing around the world, largely because data centers are purchasing more chips to help AI systems. Analysts at Morgan Stanley warned that this spike in chip prices could add extra pressure on companies such as HP, Dell, and Acer. Memory chips, including DRAM and NAND, have become costlier due to high competition in the server market and growing demand from large technology firms building AI infrastructure.
Lores said HP expects these higher memory prices to affect the company more in the second half of fiscal 2026. Currently, HP has enough chip inventory for the first half, so the impact comes later. To handle the rising costs, HP is taking several steps: working with lower-cost suppliers, using less memory in some products, and adjusting product prices where needed.
The company also gave its profit outlook: HP’s fiscal 2026 earnings are expected to be between $2.90 and $3.20 per share. Analysts had an average expectation for earnings of $3.33. For the first quarter, it expects earnings between 73 cents and 81 cents per share, with the middle of that range slightly below market estimates. HP’s revenue in the fourth quarter reached $14.64 billion, which was marginally higher than what analysts had forecast at $14.48 billion.
