HP to eliminate 4,000–6,000 positions through 2028 while doubling down on AI PC growth

Restructuring amid mixed financial performance

The computer and printer manufacturer disclosed plans to cut between 4,000 and 6,000 jobs by 2028, citing cost headwinds as the driver for the restructuring. The announcement came during HP's fourth-quarter and full-year 2025 earnings presentation, covering the period that concluded on October 31. For fiscal 2025, the company generated net revenues totaling $55.3 billion.

HP's earnings report revealed a bifurcated performance picture. The company's Personal Systems division, which encompasses PC sales, expanded 8% year-over-year, bolstered by AI-capable machines that represented more than 30% of total shipments during the fourth quarter. Conversely, printing operations contracted, with net revenue declining 4% while hardware units fell 12%.

CEO Enrique Lores addressed the strategic direction during the earnings call, stating: "We remain confident in our ability to lead the future of work through technology. With a clear strategy and disciplined execution, we are focused on driving long-term value while managing short-term headwinds."

AI transformation driving industry-wide layoffs

HP's job cuts represent part of a broader wave of workforce reductions sweeping through the technology sector as companies prioritize AI capabilities. Industry peers including AWS and Microsoft have implemented substantial layoffs as artificial intelligence reshapes corporate strategy and operations.

For HP, artificial intelligence represents a cornerstone of future growth. According to Lores, the company identifies "significant opportunity to embed AI into HP to accelerate product innovation, improve customer satisfaction and boost productivity."

The transition away from Microsoft's Windows 10 operating system will provide additional momentum for PC demand moving into 2026. Lores noted that Microsoft's October deadline for ending Windows 10 support contributed to an 8.2% year-over-year surge in global PC shipments during the third quarter of 2025, according to research from Gartner.

Lores elaborated on the company's innovation roadmap: "We are accelerating innovation with AI-powered devices that harness AI at the edge and create 'better together' experiences across our portfolio. We are also empowering CIOs with the tools they need to drive transformation, and we are leveraging the power of customer data to deliver meaningful insight."

Competitor Dell reports record AI momentum

Dell Technologies released third-quarter 2026 results for the period ending October 31, demonstrating robust demand for AI infrastructure. The company raised its full-year AI shipment guidance to $25 billion, representing a 150% increase year-over-year.

Dell's third-quarter revenue reached $27 billion, up 11% compared to the prior year. Jeff Clarke, vice chairman and chief operating officer at Dell, highlighted the acceleration: "AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date."