Tech giant HP expects to reduce its global headcount by between 4000 and 6000 employees to focus on adopting artificial intelligence (AI). Photo / Josh Edelson, AFP
Tech giant HP expects to reduce its global headcount by between 4000 and 6000 employees to focus on adopting artificial intelligence (AI). Photo / Josh Edelson, AFP
Computer and printer maker HP has announced a sweeping restructuring plan that will eliminate about 10% of its workforce globally as the company pivots towards artificial intelligence to boost efficiency.
According to its latest earnings report, the tech giant expects to reduce its global headcount by between 4000 and 6000employees to focus on adopting artificial intelligence (AI) to increase innovation and customer satisfaction.
HP’s move reflects a broader trend across the tech sector, where companies are investing heavily in AI development while using the technology to reduce operational costs.
Major tech firms including Google, Microsoft and Amazon have announced workforce reductions over the past two years, with many citing the need to reallocate resources, including jobs, towards AI initiatives.
Industry analysts say AI automation is particularly affecting roles in customer support, content moderation, data entry and certain computer programming tasks.
HP said its AI plan aims to generate approximately US$1 billion in annual savings by the end of the 2028 fiscal year.
The company has been working to transform its business model amid changing demand patterns in the PC and printing markets.
HP CEO Enrique Lores told the Wall Street Journal that the company plans to raise the prices of its computers and work with new suppliers to help offset the higher costs of AI computing.
