HP to cut up to 6,000 jobs under new cost-saving plan
HP Inc. will launch a company-wide restructuring plan aimed at accelerating innovation across AI-powered devices to drive productivity, a move the company expects will generate roughly USD 1 billion in gross run-rate cost savings by the end of fiscal 2028.
The initiative, announced alongside HP’s Fiscal 2025 full-year results, will involve significant restructuring charges and workforce reductions. HP said it anticipates approximately USD 650 million in labor and non-labor costs associated with the plan, including about USD 250 million in fiscal 2026. As part of the effort, the company expects to cut 4,000 to 6,000 jobs globally by fiscal year 2028.
HP Inc.'s president and CEO, Enrique Lores, said the company’s 2025 performance demonstrated resilience amid shifting market conditions.
“Our FY25 results reinforce the power of our portfolio and the strength of our team in a dynamic environment. As we accelerate innovation across AI-powered devices to drive productivity, security, and flexibility for our customers, our focus for FY26 is on disciplined execution. We are committed to driving measurable results - ensuring that our plans translate into long-term value for our shareholders.”
Chief Financial Officer Karen Parkhill said the company is adjusting to “recent cost headwinds” while expanding investment in AI-enabled initiatives intended to accelerate product development, strengthen customer satisfaction, and boost productivity.
Parkhill said HP is “confident these actions will strengthen our foundation and position us for long-term growth” as the company moves into fiscal 2026.
The multiyear restructuring will roll out under what HP calls its “fiscal 2026 plan,” which emphasises AI adoption and enablement. The actions are expected to be completed by the end of fiscal 2028.
