HP said Tuesday it expects to chop between 4,000 and 6,000 jobs globally by fiscal 2028 as a part of a plan to streamline operations and adopt artificial intelligence to hurry up product development, improve customer satisfaction and boost productivity.
Shares of the Palo Alto, Calif.-based company fell greater than 5% in prolonged trading.
HP’s teams focused on product development, internal operations and customer support will probably be impacted by the job cuts, CEO Enrique Lores said during a media briefing call. The cuts would represent as much as 10% of its workforce.
“We expect this initiative will create $1 billion in gross run rate savings over three years,” Lores added.
The corporate laid off a further 1,000 to 2,000 employees in February, as a part of a previously announced restructuring plan.
Demand for AI-enabled PCs has continued to ramp externally, reaching over 30% of HP’s shipments within the fourth quarter ended Oct. 31.
A global memory chip price surge brought on by rising demand from data centers could push up costs and pressure profits at consumer electronics makers similar to HP, Dell and Acer, Morgan Stanley analysts have warned.
Big Tech’s push to construct out AI infrastructure has triggered price increases for dynamic random access memory and NAND — two commonly used varieties of memory chips — amid high competition within the server market.
Lores said that HP expects to feel the impact within the second half of fiscal 2026, with higher price increases. HP has enough inventory in hand for the primary half.
“We’re taking a prudent approach to our guide for the second half, while at the identical time implementing aggressive actions like qualifying lower cost suppliers, reducing memory configurations and taking price actions,” Lores said.
The corporate expects fiscal 2026 adjusted profit per share between $2.90 to $3.20, below analysts’ average estimate of $3.33, in accordance with data compiled by LSEG.
HP expects adjusted first-quarter profit per share between 73 cents and 81 cents, with the midpoint coming below estimates of 79 cents apiece.
Revenue for the fourth quarter was $14.64 billion, beating estimates of $14.48 billion.
HP said Tuesday it expects to chop between 4,000 and 6,000 jobs globally by fiscal 2028 as a part of a plan to streamline operations and adopt artificial intelligence to hurry up product development, improve customer satisfaction and boost productivity.
Shares of the Palo Alto, Calif.-based company fell greater than 5% in prolonged trading.
HP’s teams focused on product development, internal operations and customer support will probably be impacted by the job cuts, CEO Enrique Lores said during a media briefing call. The cuts would represent as much as 10% of its workforce.
“We expect this initiative will create $1 billion in gross run rate savings over three years,” Lores added.
The corporate laid off a further 1,000 to 2,000 employees in February, as a part of a previously announced restructuring plan.
Demand for AI-enabled PCs has continued to ramp externally, reaching over 30% of HP’s shipments within the fourth quarter ended Oct. 31.
A global memory chip price surge brought on by rising demand from data centers could push up costs and pressure profits at consumer electronics makers similar to HP, Dell and Acer, Morgan Stanley analysts have warned.
Big Tech’s push to construct out AI infrastructure has triggered price increases for dynamic random access memory and NAND — two commonly used varieties of memory chips — amid high competition within the server market.
Lores said that HP expects to feel the impact within the second half of fiscal 2026, with higher price increases. HP has enough inventory in hand for the primary half.
“We’re taking a prudent approach to our guide for the second half, while at the identical time implementing aggressive actions like qualifying lower cost suppliers, reducing memory configurations and taking price actions,” Lores said.
The corporate expects fiscal 2026 adjusted profit per share between $2.90 to $3.20, below analysts’ average estimate of $3.33, in accordance with data compiled by LSEG.
HP expects adjusted first-quarter profit per share between 73 cents and 81 cents, with the midpoint coming below estimates of 79 cents apiece.
Revenue for the fourth quarter was $14.64 billion, beating estimates of $14.48 billion.
