HP, the PC and printer multinational, has announced that it will cut up to 6,000 jobs by the end of 2028 as it stakes its bets on AI.

The firm made the layoff announcement in its earning report, which projected savings of about $1 billion by 2028, with the restructuring costing about $650 million.

The job cuts are set to impact product development, customer support, and internal operations teams, CEO Enrique Lores shared during a press briefing call.

HP cut around 1,000 to 2,000 jobs in February already this year.

Lores said: “Two years ago, we started to do some pilots on how AI could help us to drive these things. What we have learned is that we need to start from redesigning the process, and once we know how the process could be redone using AI, using agenetic AI, it can really have a very significant impact.”

While the CEO said that the firm ended 2025 strong, HP intends to grow “faster than the market” in 2026.

“We have a significant opportunity to embed AI in everything we do and transform the company.”

Despite the increased interested in AI PCs, HP’s stock share price fell as a result of the announcement, with its stock falling 25% year-on-year.

The cuts, which represent around 7% to 10% of HP’s global workforce, are part of the continued trend of tech giants turning to AI and abandoning human workers.

The restructuring initiative is a commonly cited reason for layoffs in the AI age, as agentic AI continues to impact junior and managerial roles across various departments.

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The strategy aims to streamline HP’s operations, and also allow for further investment in AI, be it in the company’s own internal operations or in its products.

While the firm’s 2025 fourth quarter revenue – at $14.64 billion – beat estimations, its expected fiscal profit per share sits below LSEG analyst estimates.

The firm expects to be affected by increasing demand for and the rising prices of AI-enabled chips which power its AI-enabled PCs.