HP Inc. Announces Further Layoffs Amid Economic Uncertainty
HP Inc. is planning to lay off up to 2,000 more employees, marking another round of job cuts in the volatile San Francisco Bay Area tech industry. The company’s decision reflects broader economic uncertainty and its strategic investments in artificial intelligence.
Signage is displayed outside HP Inc. headquarters in Palo Alto, Calif.
These new layoffs are part of the company’s Future Now restructuring plan that was initiated in 2022. This strategy was designed to address declining personal computer sales following an increase in remote work spurred by the COVID-19 pandemic. According to the 2024 annual report, the computer and printer manufacturer planned to cut 7,000 jobs over a three-year period.
HP’s updated restructuring plan is expected to generate approximately $300 million in savings by the end of fiscal year 2025, according to a recent filing with the U.S. Securities and Exchange Commission. With the added layoffs, the company anticipates saving $1.9 billion between fiscal years 2023 and 2025. Currently, HP employs around 58,000 people globally.
HP has not yet provided a comment on the recent announcement.
Wider Tech Industry Trends
The Palo Alto-based tech giant joins a growing list of companies in the sector reducing their workforce in anticipation of potential economic difficulties. These companies are increasing their focus on developing AI-powered products.
This week, Autodesk, which develops software for architects, designers, and engineers, also declared its intention to eliminate 1,350 positions, roughly 9% of its staff. They cited geopolitical and macroeconomic concerns as well as a commitment to greater investment in AI. In February, Meta, also reduced its workforce, cutting 3,600 jobs, representing about 5% of its total employees.
This week, Google also cut fewer than 100 positions in its cloud division, according to a Bloomberg report. A Google spokesperson confirmed the layoffs, stating that the company is “making changes to continue to invest in areas that are critical to our business and ensure our long-term success.”
HP’s Focus on AI
HP has been reinforcing its dedication to artificial intelligence. The company is increasing its efforts to design AI tools into its personal computers, with a focus on delivering more value to consumers. Earlier in February, HP acquired Humane AI, the maker of a wearable AI pin, for $116 million.
“We look forward to boosting our technology and innovation organization by integrating the Humane team to HP,” stated HP Chief Executive Enrique Lores during the company’s quarterly earnings call. “We’re also realigning our key growth areas to reflect the shift of our investment focus on the future of work.”
HP is responding to the uncertain economic environment partly caused by possible new tariffs. Trump, in his second administration, has stated he intends to impose an additional 10% tariff on Chinese imports. As a result, HP is expanding its manufacturing footprint to other countries, as mentioned by Lores. While China remains an important manufacturing location, HP expects that 90% of HP products that are sold in North America will be created outside of China by the end of fiscal year 2025.
During the first quarter, HP recorded $13.5 billion in revenue, an increase of 2.4% compared to the same period last year, and a net profit of $565 million. However, the company’s stock value decreased by approximately 7% to $30.87 on Friday.
