HP plans to expand AI development: expects to cut 6,000 jobs by 2028

Recently, HP announced that it expects to cut 4,000 to 6,000 jobs worldwide by fiscal year 2028 as part of a plan to simplify operations and use artificial intelligence to accelerate product development, improve customer satisfaction, and enhance productivity. According to the latest reports, HP CEO Enrique Lores stated at a recent media briefing that the plan is expected to generate $1 billion in total operational savings over three years, but the layoffs will also impact HP's teams focused on product development, internal operations, and customer support.

HP is increasing its investment in artificial intelligence development by cutting over 6,000 jobs, which can bring certain positive impacts in some aspects. Firstly, the job cuts can optimize human resource allocation to some extent, allowing the company to concentrate the saved labor costs into AI research and development, providing more substantial financial support for exploration and innovation in AI technology and accelerating technological breakthroughs. Secondly, this move can promote the transformation of the company's business structure, directing resources toward high value-added AI-related businesses, enhancing the company's core competitiveness in the era of intelligence, and adapting to market development trends. At the same time, increasing efforts in AI development helps improve operational efficiency by optimizing various aspects such as production, management, and marketing through intelligent technologies, thereby reducing operating costs. Additionally, by proactively investing in and vigorously developing AI ahead of industry competition, HP can gain a first-mover advantage in technology and market, strengthen its industry position, and lead the trend of intelligent development in the industry.

At the same time, while the downsizing plan can drive progress, it will also have certain impacts. For HP, large-scale layoffs are usually accompanied by organizational restructuring, with some traditional business units being streamlined or merged, potentially causing the loss of senior employees in non-AI areas. These employees hold valuable experience and client resources in the company's traditional business, and their departure may affect the stability of these operations. Additionally, the reduction in positions puts over 6,000 employees at risk of unemployment. For employees who have worked in traditional roles for many years and have relatively specialized skills, competition in the job market will be more intense, making it difficult to quickly find suitable new positions, and some may even face long-term unemployment. Furthermore, HP's plan will likely encourage the labor market to increasingly value emerging skills such as artificial intelligence, reducing the demand for traditional roles, and potentially leading to structural imbalances in the labor market.

In response to the potential impact of the layoff plan, HP should collaborate with universities and vocational training institutions to jointly develop AI-related courses tailored to market demand, providing laid-off employees with opportunities for further education and skill enhancement. At the same time, a special reemployment fund should be established to offer career guidance and job placement services to laid-off employees, helping them smoothly transition to new professional fields. In addition, HP should strengthen skills training and knowledge updates for current employees, encouraging them to actively learn AI-related knowledge to enhance personal competitiveness and adapt to the company's business structure transformation needs.

In summary, HP's plan to cut positions in order to expand its artificial intelligence development, while promoting the company's growth and adapting to the trends of the times, also brings about increased employment pressure and structural imbalances in the labor market. Therefore, HP needs to take relevant measures and actions to reduce the impact of layoffs, such as cooperating with other efficient companies or organizations and strengthening the training of existing employees' skills, in order to minimize the negative effects of the layoff plan. This will allow the company to leverage the advantages brought by increased AI development and achieve sustainable development in the era of intelligence.