HP Inc said Tuesday it will trim its global workforce by as many as 6,000 employees over the next several years, a move aimed at streamlining operations and speeding up its adoption of artificial intelligence. Shares of the Palo Alto-based company fell 5.5% in after-hours trading.
CEO Enrique Lores said the reductions will mostly affect staff in product development, internal operations, and customer support.
“We expect this initiative will create $1 billion in gross run rate savings over three years,” Lores said.
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HP, which already cut 1,000 to 2,000 jobs earlier this year, is seeing growing demand for AI-enabled PCs, which accounted for more than 30% of its fourth-quarter shipments.
Lores also flagged rising memory chip costs driven by data center demand, which could pressure profits later in fiscal 2026.
“We are taking a prudent approach while implementing aggressive actions like qualifying lower-cost suppliers and adjusting memory configurations,” he said.
The company now expects fiscal 2026 adjusted earnings per share between $2.90 and $3.20, below analysts’ forecast of $3.33.