SAEDNEWS: HP Inc said on Tuesday it expects to cut between 4,000 and 6,000 jobs globally by fiscal 2028 as part of a plan to streamline operations and adopt artificial intelligence to speed up product development, improve customer satisfaction and boost productivity.
CEO Enrique Lores said during a media briefing that job cuts will affect teams focused on product development, internal operations, and customer support.
“We expect this initiative to generate $1 billion in gross run-rate savings over three years,” Lores added.
Earlier in February, HP laid off an additional 1,000 to 2,000 employees as part of a previously announced restructuring plan.
Demand for AI-enabled PCs continues to grow, accounting for more than 30% of HP’s shipments in the fourth quarter ended October 31.
Morgan Stanley analysts warned that a global surge in memory chip prices, driven by data center demand, could raise costs and squeeze profits for consumer electronics makers like HP, Dell, and Acer.
The tech sector’s push to expand AI infrastructure has driven up prices for dynamic random-access memory (DRAM) and NAND chips—two widely used types—amid strong server market competition.
Lores said HP expects the impact to hit in the second half of fiscal 2026, though the company has sufficient inventory for the first half.
“We are taking a prudent approach to our guidance for the second half while implementing aggressive actions, such as qualifying lower-cost suppliers, reducing memory configurations, and adjusting prices,” Lores said.
HP forecasts adjusted earnings per share for fiscal 2026 between $2.90 and $3.20, below analysts’ average estimate of $3.33, according to LSEG data.
For the first quarter, HP expects adjusted earnings per share between 73 cents and 81 cents, with the midpoint slightly below estimates of 79 cents.
Revenue for the fourth quarter was $14.64 billion, surpassing estimates of $14.48 billion.
