Robots and synthetic intelligence to interchange 6,000 employees at main tech firm
Tech giant HP is set to axe up to 6,000 jobs worldwide as it turns to robots and artificial intelligence to cut costs and speed up innovation, with most layoffs hitting internal operations
Thousands of workers worldwide will reportedly lose their jobs to “robots and artificial intelligence (AI)”. Tech giant Hewlett Packard (HP) has announced plans to cut up to 6,000 jobs to save costs and boost efficiency.
The California-based tech giant revealed on Tuesday (November 26) plans to cut between 4,000 and 6,000 jobs globally by 2028. This represents about 10 percent of its workforce.
As it once employed over 350,000 people at its peak, HP has been facing a turbulent year, with investors showing interest in the firm’s new computer chip projects, but not its usual products like laptops, printers, and ink.
As a result, the shocking move to make thousands of workers redundant has been motivated by the need to stay competitive in a rapidly changing market. Moreover, the company’s stock has been reportedly volatile, dropping nearly 15 percent since January but still up 83 percent since May.
HP’s expected layoffs will reportedly mainly affect internal operations, product development, and customer service. This will save $1 billion over three years, the Daily Mail reported.
During Tuesday’s company meeting in a call, CEO Enrique Lores told investors that reducing staff will help HP innovate faster and improve efficiency. He said: “As we look ahead, we see a significant opportunity to embed AI into HP to accelerate product innovation, improve customer satisfaction, and boost productivity.”
The announcement reportedly coincided with better-than-expected quarterly results, as HP reported $14.6 billion in revenue, slightly beating analyst forecasts.
While PC sales rose 8 percent, printer sales dipped 4 percent, and the company’s share price swung sharply in response to the news.
HP’s decision reflects a broader trend in the tech industry, where major firms are embracing AI for both growth and cost-cutting. As a result, lay-offs or dramatic reductions in terms and conditions were the biggest worries about the AI explosion for 51% of 2,600 adults surveyed earlier this year.
The Trades Union Congress, which carried out the survey, called for a “step change” in the nation’s approach to new technology. AI is a particular concern for workers aged 25 to 34, the Daily Star previously reported.
Nearly two-thirds of them fear they will lose their work roles to bots. The poll comes after a string of big employers, including BT, Amazon and Microsoft, have said advances in AI could lead them to cut jobs.
The Daily Star has contacted HP for comments.
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