HP Plans to Lay Off 2,000 Employees and Intensifies Investment in Artificial Intelligence

HP Inc. has announced plans to lay off up to an additional 2,000 employees as part of its ongoing cost-cutting efforts, which began in 2022. This move comes as the company works to reduce expenses and improve operational efficiency amid declining demand in the personal computer market. With this additional layoff, the total number of jobs to be cut rises to around 9,000. The company expects to save approximately $300 million by the end of fiscal year 2025, although it will incur $150 million in restructuring costs.

In another strategic move, HP has expanded its portfolio in the field of artificial intelligence by acquiring parts of the startup Humane. This acquisition, valued at $116 million, includes integrating a team of engineers specializing in AI technology to develop and enhance innovative solutions in this space. This step is part of HP’s strategy to keep pace with rapid technological advancements and broaden its offerings in line with global trends in artificial intelligence.

Despite the economic challenges the company faces, including sluggish demand in the personal computer market, HP has issued financial forecasts lower than expected for the first quarter of the upcoming fiscal year. The company anticipates adjusted earnings per share to range between 70 and 76 cents, which is below the previous expectations of 85 cents per share. These projections indicate that HP is facing additional challenges amid the intense competition in the rapidly changing technology market.