HP to Slash 6,000 Roles as Memory Prices Spike and the AI Transition Bites

After Microsoft trimmed thousands of roles throughout this year, HP is now preparing one of its largest workforce reductions in years. Here, we are discussing the potential for slashing 6,000 jobs as the company battles rising component costs, shaky demand, and a wobbly outlook for fiscal 2026.

HP says the planned layoffs, representing as much as 10% of its global staff, are part of a multi-year restructuring roadmap that runs through 2028. The company is trying to pull back at least $1 billion in annual expenses as memory prices spike and new U.S. trade rules inflate operating costs far faster than anticipated.

Despite posting a 4% bump in quarterly revenue to $14.65 billion and modest net income growth to $795 million, investors are unsure about it. HP reportedly expects FY26 EPS of $2.90–$3.20, below the market’s $3.33 projection. The print business remains the biggest drag, down by 4%, while PCs held strong with 8% YoY growth to $10.35 billion.

The real pain point HP says is related to components as memory alone has ballooned to 18% of a typical PC’s cost, with prices rising sharply in recent weeks. The surging cost of DRAM is also expected to hike the price of Xbox consoles yet again.

Not to forget, HP laid off an additional 1,000 to 2,000 employees in February as part of a planned restructuring. All that said, HP CEO Enrique Lores is still pushing an AI-first narrative, arguing that HP can embed AI deeper across its product stack and internal workflows.

Big Tech keeps saying AI is the next big opportunity, but for thousands of workers, it’s increasingly becoming the next big layoff trigger.