Technology company HP has announced plans to reduce its global workforce by up to 6,000 positions by the end of 2028. The company has said the cuts are part of a broader restructuring as HP shifts its strategic focus toward artificial intelligence driven products and services. The move reflects the company’s efforts to streamline operations, reduce costs and redirect investment toward emerging sectors in the rapidly changing technology landscape.
According to HP, the job reductions will take place gradually over several years and will affect a range of roles across business functions. The company said it aims to align its workforce structure with future business needs, particularly in areas related to AI development, software solutions, consumer tech and enterprise services. HP emphasised that the decision was not taken lightly but is necessary to ensure long-term competitiveness and adaptability.
HP’s pivot toward AI follows a trend among global technology firms recalibrating their business models to capitalise on growing demand for generative AI, machine learning, and cloud-based solutions. The company expects that investments in AI infrastructure, product innovation and digital offerings will position it for future growth even as demand for traditional hardware undergoes transformation. Industry analysts view this as a strategic response to declining margins in hardware segments and rising competition in personal computing.
In its public statement HP said that while certain jobs will be cut, the company plans to increase investments in AI related roles, research and development, and technology innovation. This suggests that HP seeks to redeploy talent toward new initiatives rather than simply reducing headcount indiscriminately. The company indicated that it will offer support for affected employees, which may include severance packages, re-training programs and opportunities to transition into other roles within HP’s changing organisation structure.
The announcement has elicited a mixed response from industry observers. Some analysts note that job cuts reflect the challenging conditions in the hardware industry, where demand cycles, supply chain dynamics and shifting consumer preferences have created uncertainty. For HP, which has historically relied heavily on personal computers and printers, diversifying into AI and software services may help mitigate these headwinds. Others warn that layoffs may impact morale, employee retention and institutional knowledge — especially among long-serving staff.
HP’s strategy may also indicate a broader shift in how legacy technology companies evolve in the age of AI. As the economics of software and AI solutions become more attractive than traditional manufacturing, firms are reevaluating their portfolios to focus on high-margin recurring revenue streams. For customers and enterprise clients, this could result in a shift toward bundled AI-enabled hardware solutions, subscription services and integrated platforms rather than standalone devices.
The company’s emphasis on AI is consistent with growing market demand for intelligent computing — from edge devices and smart peripherals to enterprise AI infrastructure and cloud-edge integrations. HP said it intends to channel part of the cost savings from its workforce reduction toward research, product design and global expansion of AI-based offerings. These may include consumer-facing AI features, enterprise workflows, security tools, creative software integrations and device-software ecosystems.
However, the decision may have wider implications for the technology industry workforce. Employment contraction in hardware-centric firms like HP could lead to a reevaluation of skill requirements, job security and labour dynamics. Experts say workers may need to adapt by acquiring new skills related to AI, software development, cloud services or data science. Companies are increasingly expected to provide reskilling opportunities to support this transition and minimise disruption.
For investors and market watchers, HP’s plan signals how the company sees future growth potential. Moving away from legacy hardware dependency could help improve margins and reduce capital intensity. It may also allow HP to compete more effectively against newer entrants that are already built around software, AI and cloud-first models. The upheaval is significant but reflects a company attempting to evolve with changing market conditions.
Employee advocacy groups and labour economists have raised concerns about the social impact of such layoffs. In a world where AI and automation are already transforming jobs, the added uncertainty in traditional tech manufacturing firms could increase employment instability. Policymakers and industry stakeholders may need to consider support mechanisms, retraining programmes and social safety nets to address potential disruptions.
HP said it plans to carry out the restructuring carefully, with attention to transparency and communication. The company indicated it will notify affected employees well in advance and provide assistance. It also said that it aims to minimise disruption to ongoing operations and maintain service levels for customers and enterprise clients during the transition.
As HP prepares for this major transition, the technology sector will likely watch closely. The company’s ability to balance layoffs with investment in new growth areas may determine its future competitiveness and relevance. For HP, success depends on execution, market reception to its AI offerings and effective management of organisational change.
In summary, HP’s announcement of up to 6,000 job cuts by 2028 marks a major restructuring tied to its strategic pivot toward artificial intelligence and software services. The move reflects pressures in hardware markets and a broader industry trend toward AI-driven models. While the shift offers potential growth opportunities, it also raises important questions about workforce transition and the future of employment in legacy tech firms.