HP Job Cuts: AI as a Convenient Excuse for Unsustainable Capitalism
HP Inc. announced a global workforce reduction of 4,000 to 6,000 employees by fiscal 2028, primarily impacting product development, internal operations, and customer support teams, with the goal of streamlining operations and leveraging AI. This initiative is expected to generate $1 billion in gross run rate savings over three years. The company is also navigating challenges from rising memory chip prices, driven by increased demand from data centers, anticipating the impact in the second half of fiscal 2026. While Q4 revenue exceeded expectations, HP anticipates adjusted profit per share for fiscal 2026 to be slightly below analyst estimates.
John Q. Hosedrinker