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HP to Cut 4,000–6,000 Jobs by 2028 in AI-Focused Restructuring

Lower profit guidance tied to rising memory prices alongside U.S. trade costs drove a roughly 5% after-hours share decline.

Overview

  • HP will reduce global headcount by 4,000 to 6,000 by the end of fiscal 2028 as it streamlines operations and deploys AI across product development, operations, and customer support.
  • The program targets about $1 billion in gross run-rate savings over three years and carries roughly $650 million in restructuring charges, including about $250 million in fiscal 2026.
  • For fiscal 2026, HP guided to adjusted earnings of $2.90 to $3.20 per share and projected 73 to 81 cents for the first quarter, both below LSEG consensus estimates.
  • Management cited rising DRAM and NAND prices driven by AI infrastructure demand plus U.S. trade-related regulations as margin headwinds, with sharper effects expected in the second half of fiscal 2026.
  • Fourth-quarter revenue was $14.64 billion, topping estimates, and AI-enabled PCs accounted for more than 30% of shipments.