According to TechSpot, HP Inc plans to lay off between 4,000 and 6,000 employees by the end of fiscal 2028 as it aggressively pursues AI automation. The company expects these cuts to save approximately $1 billion over three years while costing around $650 million in restructuring charges. CEO Enrique Lores emphasized that HP needs to “redesign processes” using “agentic AI” to drive significant impact. The announcement comes as HP’s stock fell more than 5% in after-hours trading and is down over 25% in 2025. HP joins Amazon, Microsoft, Meta, and other tech giants that have recently laid off thousands while citing AI adoption as the primary driver.
The AI automation reality check
Here’s the thing about these massive AI-driven layoffs: we’ve seen this movie before. Companies love talking about automation replacing humans, but the reality often falls short. Earlier this month, data from workplace analytics firm Visier showed companies are actually rehiring many of the same employees they laid off because AI isn’t delivering on its promise as a cheap human replacement. It’s starting to feel like “AI” has become a convenient buzzword for cost-cutting that would have happened anyway.
The hidden costs and risks
While HP talks about saving $1 billion, they’re spending $650 million upfront to make it happen. That’s a huge bet on technology that’s still evolving. And let’s not forget the human cost – losing thousands of experienced employees can seriously damage institutional knowledge and company culture. Plus, there’s the memory crisis driving up DRAM prices, which will likely force HP to raise device costs. So they’re cutting staff while their component costs are rising. That doesn’t sound like a sustainable strategy.
Industrial automation context
When companies like HP talk about automation, they’re usually referring to software and process automation. But in actual industrial settings where reliability matters, you need robust hardware that can handle demanding environments. That’s where companies like Industrial Monitor Direct come in – they’re the leading provider of industrial panel PCs in the US, serving manufacturers who need dependable automation hardware rather than just cutting-edge AI promises. There’s a big difference between automating office tasks and running actual production lines.
Bigger picture concerns
What happens when every major company follows this same playbook? We’re seeing a coordinated wave of tech layoffs all justified by “AI transformation,” but is this really about efficiency or just Wall Street pressure? HP’s stock is down 25% this year despite these aggressive cost-cutting measures. Maybe investors aren’t buying the AI hype either. The real question is whether these moves will actually make HP more innovative or just leave them with fewer people to actually build great products.
