HP Bets $1-B on AI Even If It Means Axing Thousands of Jobs

HP Inc. is doubling down on artificial intelligence (AI) — and betting it will replace thousands of jobs in the process.

“There are many things that today we have to do using people ... that in the future AI will do better and will do faster,” CEO Enrique Lores told Federico Velasquez of Yahoo Finance.

HP’s AI approach goes far beyond chatbots, including AI agents that automate processes, AI-assisted software development, and systems that accelerate operations. (Photo: HP Facebook)

It’s not just an HP issue, he added, but an “industry-wide” shift companies must embrace to stay competitive. That transformation is reshaping HP. The company on Tuesday unveiled a sweeping AI initiative tied to new restructuring efforts.

HP expects to eliminate 4,000 to 6,000 jobs globally and generate $1 billion in annualized savings by fiscal 2028.

“We’re moving from pilots to specific initiatives across multiple areas,” Lores said, noting AI is accelerating product development, improving customer satisfaction, and boosting internal productivity.

He emphasized that HP’s AI approach goes far beyond chatbots, including AI agents that automate processes, AI-assisted software development, and systems that accelerate operations.

The through line: Tasks once handled manually are increasingly being handed over to AI systems.