""We expect this initiative will create $1 billion in gross run rate savings over three years," Lores said during the call. "It's something we have to do to make sure the company stays competitive.""
""What we have learned is that we need to start from redesigning the process, and once we know how the process could be redone using AI, using agentic AI, it can really have a very significant impact," Lores said during the call."
HP plans to eliminate between 4,000 and 6,000 positions by 2028 as part of an AI-driven transformation intended to generate $1 billion in savings. The company warned that surging memory chip costs will squeeze margins in the second half of fiscal 2026. Job reductions will affect product development, internal operations, and customer support. HP expects approximately $650 million in restructuring costs, with $250 million hitting fiscal 2026. The company has piloted AI applications for two years and will deploy them across product development, customer service, and operations. Savings are to be allocated to innovation, customer satisfaction, and productivity.
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