HP to cut up to 6,000 jobs as AI adoption increases
The job cuts come after the computer and printer maker, which had around 58,000 employees at the end of October last year, expanded a previously announced reduction of about 7,000 positions by an additional 1,000 to 2,000 roles.
SAN JOSE - HP (Hewlett Packard) plans to cut up to 6,000 jobs over the next three years through increased use of artificial intelligence (AI), the company said on Wednesday, with initial restructuring costs estimated at US$650 million, reported German Press Agency (dpa).
The job cuts come after the computer and printer maker, which had around 58,000 employees at the end of October last year, expanded a previously announced reduction of about 7,000 positions by an additional 1,000 to 2,000 roles. Updated workforce figures are not yet available.
HP said the new cuts are part of a broader plan to boost innovation, productivity and customer satisfaction through AI, which is increasingly used in United States (US) firms for software programming and data analysis.
The move follows a broader trend in the technology sector, where companies have cited AI adoption as a reason for job reductions.
In October, Amazon said it would cut roughly 14,000 administrative positions, pointing to organisational changes driven by AI.
HP reported revenue of US$55.3 billion for its most recent fiscal quarter, up around three per cent year-on-year, while net income fell nine per cent to US$2.5 billion. - BERNAMA
Download Sinar Daily application.Click Here!
