Categories: Technology

HP’s Bold AI Move Could Reshape Workforce Amid Economic Waves

Company HP has announced its plan to streamline operations and leverage artificial intelligence (AI) to accelerate product development, enhance customer satisfaction, and boost productivity by the 2028 fiscal year. This move includes the reduction of 4,000 to 6,000 jobs globally. Palo Alto, California-based company’s shares fell by 5.5% during trading.

CEO Enrique Lores stated at a press conference that the job cuts will affect HP teams involved in product development, internal operations, and customer support. “We expect this initiative to save $1 billion by reducing unit costs over three years,” Lores added.

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In February, the company laid off an additional 1,000–2,000 employees as part of a previously announced restructuring plan. External demand for AI-enabled PCs continues to rise, accounting for over 30% of HP’s shipments in the fourth quarter ending October 31.

Global memory chip price increases, driven by rising demand from data centers, could lead to higher costs and reduced profits for consumer electronics manufacturers like HP, Dell, and Acer, Morgan Stanley analysts warn.

Casey Reed

Casey Reed writes about technology and software, exploring tools, trends, and innovations shaping the digital world.

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