HP Inc. plans to cut 4,000 to 6,000 jobs by 2028 to streamline operations and enhance its AI capabilities, leading to $1 billion savings. Market analysts warn of rising costs due to memory chip price hikes.<\/b>
\nLaptop and PC maker HP Inc reportedly said on Tuesday it aims to cut 4,000 to 6,000 jobs globally by the fiscal 2028, to streamline operations and adopt artificial intelligence (AI) across various functions, including to expedite product development, improve customer satisfaction, and enhance productivity. The job cuts will impact Palo Alto, California-headquartered company’s team focused on product development, internal operations and customer support, its chief executive Enrique Lores said during a media briefing call, according to a report by news agency Reuters. \u00ab\u00a0We expect this initiative will create $1 billion in gross run rate savings over three years\u00a0\u00bb, Lores added.HP is the world’s second-largest PC vendor with a volume share of 19.8%, as of Q3 2025, as per the market research firm International Data Corporation (IDC). In February, the company laid off about 1,000 to 2,000 employees, as part of a previously announced restructuring plan. HP, meanwhile, has benefitted from market demand for AI-enabled PCs, with their share reaching over 30% of the company’s shipments in the fourth quarter ended October 31.The report, citing analysts from Morgan Stanley, warned that a surge in memory chip prices globally due to rising demand from data centres could increase costs and pressure profits at consumer electronics makers such as HP, Dell, and Acer. Big Tech majors have been on a spending spree to build out AI infrastructure, triggering price increases for dynamic random access memory (DRAM) and NAND, the two most common types of memory chips, amid high competition in the server market. The chief executive said HP expects to feel the impact in the second half of fiscal 2026, with higher price increases, adding that the company has enough inventory for the first half.\u00a0\u00bbWe are taking a prudent approach to our guide for the second half, while at the same time implementing aggressive actions like qualifying lower cost suppliers, reducing memory configurations and taking price actions\u00a0\u00bb, Lores said, as per the report. HP’s revenue for the fourth quarter was $14.64 billion, beating estimates of $14.48 billion, according to Reuters.<\/p>\n