Dive Brief:
- HP will cut between 4,000 and 6,000 jobs by 2028 due to recent cost headwinds as it invests in AI-enabled initiatives, the company said in a press release and earnings call for its fourth quarter and full fiscal year 2025, which ended Oct. 31. The company reported net revenues of $55.3 billion for its 2025 fiscal year.
- The workforce reductions comes as the company reported a mixed earnings outlook, which included growth in its AI PC shipments, representing more than 30% of HP’s overall shipments in Q4. The company’s Personal Systems revenue, which includes PC sales, grew 8% year over year. But it also saw a 4% decline in printing net revenue while hardware units were down 12%.
- “We remain confident in our ability to lead the future of work through technology,” HP CEO Enrique Lores said during the earnings call. “With a clear strategy and disciplined execution, we are focused on driving long-term value while managing short-term headwinds.”
Dive Insight:
HP’s restructuring will add to a growing tally of jobs cut due in part to accelerated AI adoption. AWS, Microsoft and other large tech companies have laid off thousands of workers as AI drives company-wide strategy shifts.
AI will play a crucial role in HP’s future, as the company sees “significant opportunity to embed AI into HP to accelerate product innovation, improve customer satisfaction and boost productivity,” Lores said.
The sunsetting of Microsoft’s Windows 10 and the Windows 11 refresh will also continue to be a tailwind for the PC market heading into 2026, Lores added. Microsoft’s October end-of-support deadline for Windows 10 drove an 8.2% year-over-year increase in global PC shipments in Q3 2025, according to a Gartner report.
“We are accelerating innovation with AI-powered devices that harness AI at the edge and create ‘better together’ experiences across our portfolio,” Lores said. “We are also empowering CIOs with the tools they need to drive transformation, and we are leveraging the power of customer data to deliver meaningful insight.”
Dell also reported results for Q3 2026, which ended Oct. 31, with a strong focus on AI shipments. The company said it’s raising its AI shipment guidance for its full fiscal year to $25 billion, up 150% year over year.
Dell’s Q3 revenue totaled $27 billion, up 11% year over year.
“AI momentum is accelerating in the second half of the year, leading to record AI server orders of $12.3 billion and an unprecedented $30 billion in orders year to date,” Jeff Clarke, vice chairman and COO at Dell, said in a press release.
