HP to slash up to 6,000 jobs in big restructuring — latest tech company to pivot to AI

Core Insights - HP plans to cut between 4,000 and 6,000 jobs globally by fiscal 2028 to streamline operations and enhance productivity through artificial intelligence [1][2] - The job cuts will affect teams focused on product development, internal operations, and customer support, representing up to 10% of its workforce [2] - The company anticipates $1 billion in gross run rate savings over three years from this initiative [4] Financial Performance - HP's revenue for the fourth quarter was $14.64 billion, surpassing estimates of $14.48 billion [11] - The company expects adjusted profit per share for fiscal 2026 to be between $2.90 and $3.20, which is below analysts' average estimate of $3.33 [9] - For the first quarter, HP expects adjusted profit per share between 73 cents and 81 cents, with the midpoint below estimates of 79 cents [11] Market Trends - Demand for AI-enabled PCs has increased, accounting for over 30% of HP's shipments in the fourth quarter ended October 31 [5][8] - A surge in global memory chip prices due to rising demand from data centers may increase costs and pressure profits for HP and other consumer electronics makers [5][6] - HP is taking measures to mitigate cost increases by qualifying lower-cost suppliers and reducing memory configurations [9]