HP to cut up to 6,000 jobs in global AI overhaul
Sign up now: Get ST's newsletters delivered to your inbox
HP's job cuts reflect a growing trend across the tech sector, where companies are investing heavily in AI development.
PHOTO: HP/FACEBOOK
Follow topic:
San Francisco – Computer and printer-maker HP announced on Nov 25 a sweeping restructuring plan that will eliminate about 10 per cent of its workforce globally, as the company pivots towards artificial intelligence (AI) to boost efficiency.
According to its latest earnings report, the tech giant expects to reduce its global headcount by between 4,000 and 6,000 employees to focus on adopting AI to increase innovation and customer satisfaction.
In response to queries from The Straits Times on any Singapore layoffs, a spokesman for HP Singapore said: “HP will not be providing a response on this matter. We’ll be in touch should there be any updates to share.”
HP’s move reflects a growing trend across the tech sector, where companies are investing heavily in AI development while using the technology to reduce operational costs.
Major tech companies such as Google, Microsoft and Amazon have announced workforce reductions over the past two years, with many citing the need to reallocate resources, including jobs, towards AI initiatives.
Industry analysts say AI automation is particularly affecting roles in customer support, content moderation, data entry and certain computer programming tasks.
HP said its AI plan aims to generate approximately US$1 billion (S$1.3 billion) in annual savings by the end of fiscal 2028.
The company has been working to transform its business model amid changing demand patterns in the PC and printing markets.
HP chief executive Enrique Lores told The Wall Street Journal that the company plans to raise the prices of its computers and work with new suppliers to help offset the higher costs of AI computing.
In its latest quarter, HP posted a profit of US$795 million, compared with US$906 million a year earlier.
Revenue rose 4.2 per cent to US$14.64 billion, topping analyst estimates with sales in PCs offsetting a decline in printer sales.
Since opening its first factory in Singapore in 1970, HP’s presence in the Republic has evolved into a strategic innovation hub, with research and development across print, personal systems and smart manufacturing applications.
It was last reported in September 2021 that HP Singapore employed over 3,000 people. Its current Singapore headcount was not disclosed. AFP
With additional information from The Straits Times
