HP has unveiled a sweeping restructuring plan that includes cutting up to 10 percent of its employee headcount by the end of fiscal year 2028 as part of the company’s strategy to accelerate innovation and drive productivity through the adoption of AI.
Bloomberg reports that HP has announced a significant workforce reduction plan aimed at generating $1 billion in gross cost savings by the end of fiscal year 2028. The Silicon Valley giant, known for its PCs and printers, plans to cut between 4,000 and 6,000 jobs, which represents up to 10 percent of its current workforce.
The announcement, made during the company’s earnings presentation on Tuesday, sent HP’s shares down about three percent in morning trading on Wednesday. The job cuts are part of a larger initiative to transform the company’s operations and drive customer satisfaction, product innovation, and productivity through AI adoption and enablement.
HP CEO Enrique Lores emphasized that the cuts are not merely about cost reduction but about fundamentally reshaping the company’s business strategies. “Two years ago, we started to do some pilots on how AI could help us to drive these things,” Lores said during a media briefing call. “What we have learned is that we need to start from redesigning the process, and once we know how the process could be redone using AI, using agenetic AI, it can really have a very significant impact.”
The restructuring plan is expected to incur $650 million in costs, with $250 million projected for fiscal year 2026 alone. Despite these short-term costs, HP remains confident in the long-term benefits of its AI-driven transformation strategy.
Other companies in Silicon Valley are also cutting jobs in favor of AI. Breitbart News previously reported that Salesforce CEO Marc Benioff openly bragged about cutting 4,000 jobs in favor of AI agents:
Salesforce CEO Marc Benioff recently appeared on business podcast The Logan Bartlett Show where he shared insights into how AI is transforming the workforce at the San Francisco-based software giant. Benioff revealed that Salesforce has cut its support staff from 9,000 employees to 5,000, bragging that AI has replaced the jobs of 4,000 Salesforce workers.
Salesforce’s AI agents, part of a platform developed by the company, are designed to provide customer service, support employees, and enhance overall productivity. These AI-powered agents can proactively handle tasks without constant human input, such as answering customer questions about pricing, generating marketing materials, and managing websites.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
