The job cuts are expected to be completed by the end of 2028
HP has announced that it is expecting to cut up to 6,000 positions globally by fiscal 2028 as part of a company-wide initiative that will see the tech giant leverage AI to deliver growth.
The new company-wide initiative is aimed at utilising AI to drive customer satisfaction, product innovation, and productivity.
Part of the move is the reduction of gross global headcount by approximately 4,000 to 6,000 employees, according to HP.
"These actions are expected to be completed by the end of fiscal 2028," it said in a statement.
HP CEO Enrique Lores said teams focused on product development, internal positions, and customer support will be impacted by the job cuts, Reuters reported.
"The company estimates that it will incur approximately $650 million in labour and non-labour costs related to restructuring and other charges, with approximately $250 million in fiscal 2026," HP said.
HP has 58,000 employees worldwide, according to GlobalData. It recently laid off an additional 1,000 to 2,000 employees in February under a previous restructuring plan.
Its move to cut positions comes in the wake of growing fears that further AI implementation is taking away job opportunities for employees.
A global report from IDC and DEEL revealed that recruitment for entry-level employees is expected to slow down in the next five years as AI reshapes the workforce needed in organisations.
Recently, companies such as Amazon have indicated that they are also expecting their workforce to shrink as the company rolls out more generative AI and agents.
