"HP Inc. said that it will lay off 4,000 to 6,000 employees in favor of AI deployments, claiming it will help save $1 billion in annualized gross run rate by the end of its fiscal 2028. HP expects to complete the layoffs by the end of that fiscal year. The reductions will largely hit product development, internal operations, and customer support, HP CEO Enrique Lores said during an earnings call on Tuesday."
"Using AI, HP will "accelerate product innovation, improve customer satisfaction, and boost productivity," Lores said. In its fiscal 2025 earnings report released yesterday, HP said: Structural cost savings represent gross reductions in costs driven by operational efficiency, digital transformation, and portfolio optimization. These initiatives include but are not limited to workforce reductions, platform simplification, programs consolidation and productivity measures undertaken by HP, which HP expects to be sustainable in the longer-term."
"Salesforce, for example, announced in October that it had let go of 4,000 customer support employees, with CEO Marc Benioff saying that AI meant "I need less heads." In September, US senators accused Amazon of blaming its dismissal of "tens of thousands" of employees on the "adoption of generative AI tools" and then replacing the workers with over 10,000 foreign H-1B employees. Last month, Amazon announced it would lay off about 14,000 people to focus on its most promising projects, including generative AI. Last year, Intuit said it would lay off 1,800 people and replace them with AI-focused workers."
HP Inc. will lay off 4,000 to 6,000 employees to shift toward AI deployments, aiming to save $1 billion in annualized gross run rate by the end of fiscal 2028. The company expects to complete the reductions by that fiscal year and says cuts will largely affect product development, internal operations, and customer support. HP positions AI to accelerate product innovation, improve customer satisfaction, and boost productivity. Structural cost savings include workforce reductions, platform simplification, programs consolidation, and productivity measures intended to be sustainable long-term. Multiple tech firms have already linked recent layoffs to AI-driven efficiency gains.
Read at Ars Technica
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