HP plans to save millions by laying off thousands, ramping up AI use

HP Inc. is set to lay off 4,000 to 6,000 employees in favor of AI deployments, aiming to save $1 billion annually by the end of fiscal 2028. The layoffs will target product development, internal operations, and customer support. CEO Enrique Lores highlighted that AI will drive product innovation, enhance customer satisfaction, and increase productivity. The move reflects a broader trend in the tech industry, with companies like Salesforce, Amazon, Intuit, Klarna, and Duolingo also turning to AI and laying off employees in the process to streamline operations and focus on AI-driven projects.