HP is making a major push into artificial intelligence and expects the shift to fundamentally reshape its workforce. CEO Enrique Lores told Yahoo Finance that many tasks currently performed by employees will eventually be done “better and faster” by AI, calling the transition an industrywide reality that companies must adopt to stay competitive.
As part of that transformation, HP on Tuesday launched a broad AI initiative tied to a new restructuring program.
- The company plans to cut 4,000 to 6,000 jobs globally and aims to deliver US$1 billion in annualised savings by fiscal 2028.
- Lores said HP is now moving from experimental pilots to full-scale deployment of AI across the business, using the technology to speed up product development, improve customer service and raise internal productivity.
- HP’s AI efforts extend well beyond chatbots, he said, citing AI agents that automate workflows, AI-assisted software development and systems designed to accelerate operational processes.
- The restructuring will cost about US$650 million, including roughly US$250 million in fiscal 2026.
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The restructuring underscores how AI-driven cost efficiencies are reshaping tech-sector business models. While the plan boosts HP’s long-term margin outlook, investors will watch whether the job cuts and AI investments translate into sustained revenue growth.
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HP reported mixed results for the latest quarter:
