HP Tech Titan in Cost-Cutting Maneuver – Thousands of Jobs on the Line

HP, a leading computer and printer manufacturer saw its stocks slide this Wednesday. This fall in prices came in the wake of a substantial cost-cutting plan announced by the company, which includes a massive reduction in its workforce. The plan, as the company reported, is set in motion to cut between 4,000 to 6,000 roles over the upcoming three fiscal years. This move by HP is projected to save approximately $1 billion. The layoffs could account for up to 10% of HP’s total workforce, a daunting 58,000 people according to the records from their most recent annual filing. During an earnings call this Tuesday, CEO Enrique Lores addressed investors, hinting at HP's commitment to persistently invest in AI-related pursuits. As per the transcript provided by AlphaSense, Lores emphasized that there is "a significant opportunity to embed AI into HP to accelerate product innovation, and enhance customer satisfaction and productivity." These decisions put HP in line with other technology behemoth's decisions to lay off employees despite remaining healthy in their latest quarters. This strategy may signal a burgeoning trend in tech. Major tech corporations such as Amazon and Microsoft have also undertaken layoffs recently, while simultaneously escalating their investments in Artificial Intelligence. The recent wave of layoff announcements may illustrate an increased urgency among tech companies to cut costs where possible to support investments in AI. There is also the anticipation that advancements in technology may render some job roles obsolete. However, amidst the potential layoffs, HP outperformed expectations with their reported revenue of $14.6 billion for their fiscal fourth quarter. The company's adjusted earnings per share of $0.93 also slightly exceeded analysts' estimates, according to Visible Alpha. Even though the company presented a modest profit outlook of $2.90 to $3.20 in EPS for fiscal 2026, it fell short of what analysts had anticipated. The negative market reactions were observed as HP shares took a 2% dip in recent trading, pushing their losses for the year to nearly 27%.