The world of technology is changing rapidly and employees are paying the biggest price for this change. On one hand, companies are busy catching up with the pace of Artificial Intelligence (AI), while on the other hand, the jobs of thousands of people are being put in danger. In this series, the world’s famous computer manufacturer HP Inc has made a big announcement. The company is now going to cut 4000 to 6000 employees by 2028. The reason for this is to make operations more fast, accurate and economical by adopting AI based systems.
The company says that in the coming time, with the help of AI, new products will be made faster, customer support will be better and the speed of work will also increase. According to HP CEO Enrique Lores, this change will save the company about $ 1 billion in the next three years. But it will harm thousands of employees whose jobs will now be lost due to AI.
Large scale retrenchment in the company for the second time
Even in February this year, HP had fired 1000 to 2000 employees. Now the company has again taken forward its re-structuring plan and has prepared to lay off up to 6000 people. This time, the biggest impact will be on product development, internal operations and customer support teams.
Increasing demand for AI PC and pressure on chip price
HP reported that demand for AI-enabled personal computers is growing rapidly and that 30% of total PCs shipped in the company’s fourth quarter were AI PCs. However, a major side effect of increasing demand is the rise in prices of memory chips. Due to the huge demand for AI infrastructure in data centers, the prices of DRAM and NAND chips are continuously increasing. This may put huge pressure on the profits of companies like HP, Dell and Acer. HP says that the major impact of the increase in chip prices will be felt in the second half of 2026. The company has currently stored enough stock for the first six months, but the possibility of cost increase later is serious.
Concerns increased due to weak profit guidance
The company has also reduced its profit forecast for 2026. HP expects earnings per share to be between $2.90 and $3.20, which is below market estimates. Due to this reason, the company’s shares also declined by 5.5%.
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