Another round of layoffs hit the Bay Area’s volatile tech industry.
HP Inc. plans to lay off up to 2,000 more employees as the company looks for ways to slash costs amid economic uncertainty and eyes more investments in artificial intelligence.
The job cuts are part of a restructuring plan called “Future Now” the company announced in 2022 as it saw sales for personal computers drop after the COVID-19 pandemic fueled the rise of remote work.
The computer and printer maker said it planned to cut 7,000 employees over three years, according to its 2024 annual report.
HP’s updated restructuring plan will save the company an estimated $300 million by the end of fiscal year 2025, according to a filing to the U.S. Securities and Exchange Commission on Thursday.
With the extra layoffs, the company expects to save $1.9 billion from fiscal year 2023 through fiscal year 2025, the filing said. HP has roughly 58,000 workers globally. HP didn’t immediately respond to a request for comment.
The Palo Alto tech giant is the latest tech company to slash workers as they brace for potential economic challenges and race ahead to build more AI-powered products.
Autodesk, which makes software used by architects, designers and engineers, also announced this week it plans to cut 1,350 workers or roughly 9% of its workforce, citing geopolitical and macroeconomic factors along with its efforts to invest more heavily in AI, according to a regulatory filing. Meta in February cut 3,600 workers or roughly 5% of its workforce.
This week, Google also cut fewer than 100 people in its cloud division, Bloomberg reported earlier. A Google spokesperson confirmed the layoffs but said in a statement the company is “making changes to continue to invest in areas that are critical to our business and ensure our long-term success.”
HP has been doubling down on investments in artificial intelligence as well. The company is betting more consumers will buy its personal computers filled with AI tools. Earlier in February, HP acquired Humane AI — the maker of a wearable AI pin that flopped amid consumer complaints and bad reviews — for $116 million.
“We look forward to boosting our technology and innovation organization by integrating the Humane team to HP,” said HP Chief Executive Enrique Lores on the company’s quarterly earnings call this week. “We’re also realigning our key growth areas to reflect the shift of our investment focus on the future of work.”
Cost-cutting could help tech companies mitigate the impact of economic and geopolitical uncertainty during President Trump’s second administration. Trump said this week he plans to impose an extra 10% tariff on Chinese imports.
HP, which manufactures some of its products in China, is expanding to other countries, Lores said on the call. While China continues to be an important manufacturing hub, the company expects 90% of HP products sold in North America will be built outside of China by fiscal year 2025.
HP reported $13.5 billion in revenue for the first quarter, up 2.4% from the same period last year. The company reported a net profit of $565 million. The company’s stock was down nearly 7% to close at $30.87 per share on Friday.
