Analysts question the AI narrative
While HP framed the initiative as an AI-driven transformation, analysts questioned whether the cuts were genuinely driven by AI productivity gains or more conventional cost pressures.
“HP’s latest workforce reduction appears to be driven more by cost containment than any near-term gains from artificial intelligence,” said Sanchit Vir Gogia, chief analyst at Greyhound Research. “While the company has positioned this move as part of its broader AI pivot, the financial signals suggest a more conventional story: soft PC demand, surging component prices, and margin pressure across core business lines.”
The cuts followed earlier workforce reductions at HP. In February, the company eliminated 1,000 to 2,000 employees. Before that, HP’s “Future Ready Transformation” program, launched in November 2022, ultimately affected 9,400 employees. The cumulative workforce reductions raised concerns about operational continuity
This story originally appeared on Computerworld
