HP’s 2025 layoff announcement outlined plans to eliminate between 4,000 and 6,000 jobs worldwide by the end of fiscal 2028. The PC and printer maker announced the restructuring on November 25, along with its annual financial results.
HP said the program would expand its use of artificial intelligence and make operations more efficient. The company expects to generate approximately $1 billion in annualized gross savings once the changes are completed.
The reductions will take place over several years. HP did not announce that all 4,000 to 6,000 positions would disappear in 2025.
HP Layoffs 2025: Why the Company Plans Up to 6,000 Job Cuts
HP approved the restructuring as part of an initiative to improve productivity, customer service, and product development.
In its official November 2025 announcement, the company said greater AI adoption would support those changes.
The plan covers operations across HP’s international business. It also reflects management’s efforts to simplify workflows and cut costs.
Then-CEO Enrique Lores said the reductions would affect product development, internal operations, and customer support. His comments were reported by Reuters following the earnings announcement.
The company did not disclose how many positions it would eliminate in each department or country.
HP’s workforce changes are therefore best understood as a multiyear restructuring plan, rather than a single round of layoffs completed in November.
HP Expects $1 Billion in Annual Savings From AI.
Artificial intelligence is central to HP’s explanation for the restructuring.
The company wants to use AI tools to accelerate product development, improve customer support and increase productivity across its operations.
For example, AI could help employees analyze information, automate repetitive activities and complete certain technical tasks more efficiently.
However, HP did not publish a detailed list of jobs that automated systems would directly replace.
Its November 25 SEC filing described the restructuring as a companywide program built around AI adoption and operational improvements.
Management estimated that the initiative would produce approximately $1 billion in gross annualized savings by the end of fiscal 2028.
That is a projected savings rate once the program reaches its intended scale. It is not $1 billion in savings already achieved during 2025.
The company also expects to spend money implementing the changes. This includes severance, other workforce-related expenses and costs associated with restructuring its operations.
How Much Will HP’s Restructuring Cost?
HP originally estimated that the program would generate approximately $650 million in restructuring and related charges.
Its November 2025 regulatory filing allocated about $400 million of the estimate to labor costs associated with workforce reductions.
That estimate changed in subsequent disclosures.
In its third-quarter fiscal 2026 filing, HP continued to forecast approximately $650 million in total charges. However, expected labor-related costs had increased to approximately $500 million.
The same report showed that HP had recorded $547 million in charges under the new plan during the nine months ended July 31, 2026.
The amount included severance, special termination benefits and other expenses.
Those accounting charges do not establish how many workers had already departed.
HP had not published a final number of completed job cuts under the new program in that filing.
HP Had Already Conducted Earlier Layoffs
The November 2025 restructuring followed a separate cost-reduction program launched several years earlier.
In November 2022, HP approved a plan focused on digital transformation, portfolio changes and operating efficiency.
The program continued through fiscal 2025.
During February 2025, reports indicated that HP would eliminate another 1,000 to 2,000 positions under the earlier restructuring effort.
Those reductions should not be automatically added to the new 4,000–6,000 target as if they all belonged to one plan.
HP’s later SEC disclosures stated that approximately 9,500 employees had departed under the earlier program. That figure included employee exits and voluntary enhanced early retirement.
The company described the earlier restructuring as substantially complete in 2026.
The distinction matters for layoff tracking. HP announced separate programs at different times, with different implementation periods and financial consequences.
How Large Is HP’s Workforce?
HP employed approximately 55,000 people worldwide, according to its fiscal 2025 annual report.
The planned reduction of 4,000 to 6,000 positions is therefore significant relative to the company’s workforce at the time.
However, the company described its target as reducing gross global headcount.
That does not necessarily translate into an identical decline in the final employee total. Recruitment, transfers, retirements, and other staffing changes can occur during a restructuring.
HP also operates in numerous countries, each with different labor laws and employee consultation requirements.
Its official Form 8-K acknowledged that implementation would vary by country.
The company did not provide a country-by-country layoff schedule.
As a result, no reliable public breakdown establishes how many of the planned cuts will occur in the United States, Europe or Asia.
HP’s 2025 Revenue Grew Despite Restructuring Plans
The announcement came during a period of revenue growth for HP.
The company reported fiscal 2025 revenue of about $55.3 billion, up 3.2% from the previous year.
Fourth-quarter revenue reached approximately $14.6 billion, up 4.2% year over year.
HP’s annual earnings release showed continued demand for its personal computing products.
Personal Systems revenue increased during the final quarter, supported by commercial and consumer PC sales.
However, rising component costs and uncertain market conditions pressured HP.
The company warned that higher memory prices could affect profitability during fiscal 2026. Management also expected to make adjustments involving suppliers, product configurations and pricing.
These challenges put additional pressure on cost control.
The decision to reduce jobs therefore occurred alongside revenue growth, rather than following a complete collapse in customer demand.
AI PCs Are Becoming a Larger Part of HP’s Business
HP’s restructuring announcement also reflected changes in the personal computer market.
AI-enabled computers accounted for more than 30% of HP’s fourth-quarter PC shipments in fiscal 2025, according to the company’s earnings briefing.
These devices contain hardware designed to support certain AI workloads directly on the computer.
HP has been promoting AI capabilities across its commercial and consumer product lines.
The company expects demand for new features and device upgrades to create business opportunities.
At the same time, developing AI-enabled products does not eliminate the need for traditional engineering, manufacturing and customer support work.
HP’s workforce program reflects management’s expectation that AI can change how those activities are organized.
The company has not demonstrated that every eliminated position will result from direct automation.
HP Continued Its Restructuring During 2026
Subsequent financial reports show that HP continued implementing the plan after its November 2025 announcement.
The company introduced a voluntary enhanced early retirement program for eligible U.S. employees in March 2026.
According to its July quarterly filing, eligible participants needed to be at least 55 years old and have ten or more years of service.
The company scheduled accepted employees to depart between May 2026 and April 2027.
The company also continued recording severance and other restructuring charges.
HP’s broader business remained active during the period.
In its third-quarter fiscal 2026 results, published August 26, HP reported revenue of approximately $15.7 billion.
That was up 12.5% from the same quarter a year earlier.
The company raised its fiscal-year earnings and free cash flow outlook.
Those results show the workforce program continued while the company generated higher quarterly revenue.
However, HP did not provide sufficient information to determine how much of the financial improvement was directly attributable to AI-enabled staffing changes.
What the HP Layoffs Mean for Technology Employment
HP’s planned reductions are part of a wider shift in how large technology companies organize their operations.
Some businesses are using AI to reduce repetitive work. Others are reorganizing teams while investing in new products and infrastructure.
HP has explicitly connected its restructuring to AI adoption, but the effects on individual positions remain less clear.
The distinction between announced layoffs and completed departures is also important.
A company can disclose a multiyear reduction target long before all affected employees leave.
TechAmerica.ai documents other announcements in its 2025 technology layoffs report.
Further developments involving AI investment and employment are covered in TechAmerica.ai’s 2026 technology workforce report.
For HP, the confirmed November 2025 announcement established a target of 4,000 to 6,000 global job cuts by fiscal 2028.
The company expects substantial annual savings, but the program’s full impact on its workforce will become clear as it progresses.
