NEW YORK – Tech giant HP used to have buzzing offices, but a quiet tension is rising as the company is planning to fire up to 6,000 employees over the coming years due to growing Artificial Intelligence.
US tech giant HP announced plans to lay off 10pc of its workforce over coming years, citing rapid rise of AI as the driving factor. The company will now focus all its efforts on integrating AI to streamline renewal processes and supercharge customer service.
Sources reveal that 4,000 to 6,000 employees in HP offices around the globe will be affected by this dramatic workforce reduction. HP’s move shows wider trend in the tech sector, where companies are putting all theri resources into AI development while using it to cut costs.
Companies like Google, Microsoft, and Amazon have already downsized their teams over the past two years to channel talent and capital toward AI innovation. Experts warn that AI could impact jobs in customer support, online content monitoring, data entry, and even computer programming, fundamentally changing the nature of work in tech.
HP is projecting at least $1 billion in annual savings by end of fiscal year 2028 thanks to AI implementation. The company is also rethinking its business model to align with shifting trends in computer and printer market, ensuring it stays competitive in a rapidly evolving industry.
CEO Enrique Lores said the company plans to raise computer prices and collaborate with suppliers to make products AI-compatible, marking a bold strategic pivot. The latest quarterly results show HP reported a profit of $795 million, down from $906 million in the same period last year.
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