HP to lay off up to 6000 employees by 2028, to increase focus on AI
American tech company HP Inc. has planned to lay off 4,000 to 6,000 employees globally. This plan will be completed by the end of FY28, or fiscal year 2028. The company states that rapidly increasing memory chip prices are the reason for this decision.
Operations are also being streamlined to increase focus on AI (Artificial Intelligence). This will result in gross savings of $1 billion (about Rs 8,927 crore) over three years.
The company currently has approximately 58,000 employees.
Company laid off employees earlier this year
HP CEO Enrique Llores said in a media briefing that product development, internal operations, and customer support teams will be most affected. The company currently has approximately 58,000 employees. Earlier this year, the company also laid off 1,000 to 2,000 employees.
Memory chip prices add to difficulties
Demand for memory chips is growing rapidly in the tech sector, particularly in data centers. Analysts at Morgan Stanley have warned that this will increase profit pressure on companies like HP, Dell, and Acer.
HP says these rising costs are canceling out the benefits of the PC sales cycle. The company stated that the impact will be minimal in the first half due to inventory, but caution will be exercised in the second half.