HP to cut 6,000 jobs as it expands AI strategy

The changes are designed to improve product development, customer support and internal efficiency. HP estimates the restructuring will generate about $1 billion in savings over three years. It expects to incur roughly $650 million in related costs, with about $250 million of that coming in fiscal 2026.

Teams working on product development, internal operations and customer service roles are expected to be affected. The move follows earlier layoffs in February, when the company cut an additional 1,000 to 2,000 positions under a previous plan.

Demand for AI enabled PCs has been rising and represented more than 30 percent of HP shipments in the quarter that ended October 31. The company says it sees opportunities to embed AI into more products and processes as it pushes for growth in 2026.

At the same time, HP faces higher costs linked to a global surge in memory chip prices driven by strong demand from data centers. Executives said the company expects pressure from these increases to be felt mostly in the second half of fiscal 2026 and plans to qualify lower cost suppliers, adjust memory configurations and take pricing actions to manage the impact.

Earlier, Qazinform News Agency reported on what would happen when AI hype implodes.