Job cuts : The world of technology is rapidly evolving, and employees are facing the brunt of this shift. Thousands of jobs are at stake as businesses struggle to keep up with artificial intelligence (AI). In this context, HP Inc., the world’s largest computer manufacturer, has made an important announcement. By 2028, the corporation intends to lay off between 4,000 and 6,000 staff. This is owing to the use of AI-based technologies to speed up, improve accuracy, and reduce costs.
According to the corporation, AI will speed up the development of new goods, improve customer assistance, and increase speed. According to HP CEO Enrique Lores, the adjustment will save the corporation about $1 billion over the next three years. Thousands of employees, however, will bear the brunt of the loss as a result of AI.
Job cuts : Second large-scale layoff at the company.
In February of this year, HP laid off 1,000 to 2,000 workers. The corporation has now stepped up its reorganization efforts, preparing to lay off up to 6,000 staff. This time, the biggest impact will be seen by the product development, internal operations, and customer service teams.
Growing demand for AI PCs and pressure on chip prices
HP said that demand for AI-enabled personal computers is fast increasing, with AI PCs accounting for 30% of the company’s total PCs supplied in Q4. However, one key effect of this increased demand is a rise in memory chip prices. The rising demand for AI infrastructure in data centres is driving up the cost of DRAM and NAND chips. This could drastically impact the earnings of corporations such as HP, Dell, and Acer. According to HP, the impact of the chip price hike will be felt most strongly in the second half of 2026. The company has enough inventory for the first six months, but there is a significant chance of future cost hikes.
Weak Profit Guidance Raises Concerns
The corporation has also reduced its profit prediction for 2026. HP predicts earnings per share of $2.90 to $3.20, which is below than market expectations. As a result, the company’s share price fell 5.5%.
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