He computer giant HP announced on Tuesday that it plans to reduce between 4,000 and 6,000 jobs by the end of 2028 within the framework of a plan to adopt the artificial intelligence (AI) that will allow an increase in productivity.
The reduction could represent up to a little more than 10% of the workforce of the Palo Alto, California group, which has nearly 58,000 employees, according to its annual report.
HP’s move reflects a broader trend in the technology sector, where companies are investing heavily in the development of AI as they use this tool to reduce operational costs.
Major firms such as Google, Microsoft and Amazon have announced workforce reductions over the past two years, citing the need to reallocate resources, including jobs, toward AI-related initiatives.
Industry analysts indicate that AI automation is particularly affecting positions in the areas of customer service, content moderation, data entry and certain computer programming tasks.
HP said its AI plan aims to generate approximately $1 billion in annual savings by the end of fiscal 2028.
The firm has been working on transforming its business model amid changing patterns in the changing demand for PCs and printers in the market.
HP CEO Enrique Lores told the Wall Street Journal that the company plans to raise the prices of its computers and work with new suppliers to help offset the high costs of AI-based computing.
In the latest quarter, HP reported a profit of $795 million, compared with $906 million a year earlier.
Revenue rose 4.2% to $14.64 billion, beating analyst estimates with PC sales offsetting a decline in printer sales.