HP, a computer manufacturer, is now part of the increasing number of companies that are simultaneously announcing company-wide artificial intelligence (AI) initiatives and planning to reduce their workforce. The company recently revealed its intention to integrate AI across its operations and to lay off approximately 4,000-6,000 employees by the end of 2028, representing a 10% decrease in its workforce of around 56,000 employees.
In a statement released on Tuesday, HP’s CFO Karen Parkhill stated that the company is taking firm steps to address recent cost challenges by investing in AI-driven projects to enhance product innovation, enhance customer satisfaction, and increase efficiency. The job cuts are expected to primarily impact departments related to product development, internal operations, and customer support.
The ongoing debate in 2025 revolves around the role of AI in potentially causing widespread unemployment. The job market appears bleak, with companies either scaling back on hiring new staff or letting go of employees in efforts to please investors during upcoming financial reports.
Federal Reserve Chair Jerome Powell expressed in September that while there is significant uncertainty, AI likely plays a part in the notable slowdown in hiring, especially affecting young graduates facing challenging employment prospects. Studies, including one from Stanford University in August, have supported this notion by highlighting how young workers in AI-exposed roles have experienced significant declines in employment opportunities.
Several companies have attributed their workforce reductions or reduced hiring activities to the influence of AI. For instance, Chegg and Amazon have cited AI as a factor in recent layoffs. Executives like Shopify’s CEO Tobias Lütke and Duolingo’s CEO Luis von Ahn have openly expressed their preference for automation over hiring more staff.
Despite these trends, there are differing opinions among experts regarding the extent of AI’s impact on employment. Some argue that implementing AI within firms is more challenging than commonly believed due to a lack of necessary expertise and resources. Reports from MIT also suggest that corporate AI initiatives may not always translate into substantial revenue gains as anticipated.
Furthermore, some critics believe that certain companies might be using AI as a convenient excuse for layoffs stemming from other factors such as economic conditions or trade policies. Notably, Palantir CTO Shyam Sankar has dismissed the narrative of AI completely taking over jobs as more of a Silicon Valley marketing tactic rather than an imminent reality.
Author Cory Doctorow has expressed skepticism about AI’s ability to fully replace human workers and views tech leaders’ emphasis on this narrative as a means to exert control over employees. He believes that portraying AI as capable of handling all tasks without breaks serves as a strategy to discourage workers from demanding better working conditions or rights.