More and more tech companies are announcing job cuts — and are using AI to fill in the gaps.
HP plans to cut between 4,000 and 6,000 jobs by the end of 2028 as a part of a broader push to implement AI in its operations. HP CEO Enrique Lores said the cuts will affect teams working on product development, customer support and internal operations. HP estimates that it will save approximately $1 billion by 2028 as it puts the job cuts into effect. The currently employs 58,000 people, so the cuts will represent 10% of its workforce.
“As we accelerate innovation across AI-powered devices to drive productivity, security and flexibility for our customers, our focus for FY26 is on disciplined execution,” HP CEO Enrique Lores said in a statement. “We are committed to driving measurable results — ensuring that our plans translate into long-term value for our shareholders,” he added. Lores said that the cuts are not just about reducing costs, but about “disciplined execution.”
HP isn’t the only large tech company that’s trimming its workforce with the advent of AI. Amazon has said that its corporate workforce will shrink in the coming years because of gains from AI. Just last month, Amazon had cut 14,000 jobs last month from its global workforce. Salesforce had earlier cut 4,000 customer service jobs and replaced workers with AI. At smaller companies, the cuts are even more significant, with a company like Fiverr laying off 30% of its workforce as it transitioned to being an “AI-first company”. And with AI models becoming ever more capable, it appears that the pace of these AI-enabled job cuts could only accelerate in the coming years.