Hewlett Packard Enterprise Co (NYSE:HPE, XETRA:2HP) is preparing to shed between 4,000 and 6,000 jobs worldwide by fiscal 2028 as part of a plan to simplify the business and fold more artificial intelligence into how it designs products, manages operations and supports customers.
Chief executive Enrique Lores told reporters that teams working on product development, internal processes and customer support will feel the impact.
He said the initiative is expected to generate about $1 billion in annualised savings over three years. The company had already cut up to 2,000 roles in February under an earlier restructuring effort.
The shift comes as AI-enabled PCs continue to gain traction. These machines now account for more than 30% of HP’s shipments in the quarter that ended on 31 October, a sign that the industry’s long-awaited AI refresh cycle is starting to take hold.
However, HP is also running into cost pressures from the broader AI boom. A surge in memory chip prices, driven by data centre demand, threatens to squeeze margins at manufacturers such as HP, Dell and Acer.
Analysts at Morgan Stanley recently flagged the risk, and Lores said the company expects to feel those higher component prices in the second half of fiscal 2026. HP has enough inventory to shield it through the first half.
Lores said HP is taking a cautious approach to its outlook and is working to manage costs by qualifying cheaper suppliers, reducing memory loads in some products and adjusting prices where it can.
The guidance reflects that caution. HP expects adjusted profit of $2.90 to $3.20 a share in fiscal 2026, below the $3.33 analysts had pencilled in.
Its adjusted profit guidance for the current quarter is 73 to 81 cents a share, with the midpoint slightly under expectations.
Fourth-quarter revenue came in at $14.64 billion, just ahead of forecasts.