On Tuesday, HP, a manufacturer of computers and printers, announced an extensive restructuring plan that will reduce its global workforce by approximately 10 per cent as the company shifts its focus to artificial intelligence to enhance efficiency.
The IT giant’s latest earnings report indicates an anticipated reduction of its global workforce by 4,000 to 6,000 personnel to prioritise the integration of AI to enhance innovation and customer satisfaction.
HP’s action exemplifies a broader trend in the technology sector, where firms are significantly investing in AI development while leveraging it to reduce operating expenses.
Prominent technology companies such as Google, Microsoft, and Amazon have announced workforce reductions over the past two years, often citing the need to reallocate resources, including jobs, to artificial intelligence initiatives.
Industry researchers indicate that AI automation is particularly affecting positions in customer assistance, content moderation, data entry, and specialised programming.
HP announced that its AI strategy aims to yield around $1 billion in annual savings by the end of fiscal 2028.
The company is endeavouring to reform its business strategy in response to evolving demand trends in the PC and printing sectors.
HP CEO Enrique Lores told the Wall Street Journal that the company plans to raise the prices of its machines and collaborate with new suppliers to mitigate higher AI computing costs.
In its latest quarter, HP reported a profit of $795 million, down from $906 million a year earlier.
Revenue increased by 4.2 per cent to $14.64 billion, exceeding expert projections, as PC sales compensated for a decrease in printer sales.
