HP is to cut between 4,000 and 6,000 roles by 2028, with the tech giant warning memory supply chain issues are due to impact company performance.

The workforce announcement was made in the company’s earnings call this week, detailing job losses across HP’s product development, internal operations, and customer support functions.

CEO Enrique Lores said HP was expecting an impact of approximately $650 million in restructuring costs, including $250 million in the next fiscal year.

The CEO expected the restructuring would result in gross run rate savings of $1 billion across the next three years, which would be invested across product innovation, customer satisfaction, and productivity using AI-driven business processes, which HP has been trialing since 2023.

An earlier restructuring venture in February saw the company lay off between 1,000 and 2,000 employees; a similar initiative in late 2022 saw 9,400 HP employees affected.

HP joins HPE in memory woes

HP’s earnings calls also warned rising prices of memory chips would impact profitability in the second half of fiscal 2026, with an estimated impact of $0.30 per share despite mitigation measures.

HP added it had sufficient inventory to meet demand through the first half of the next fiscal year.

The money in memory has gone up due to the rise of AI, with Samsung reportedly hiking the price of its dynamic random access memory (DRAM) wares to meet demand.

HP spinout Hewlett Packard Enterprise (HPE), meanwhile, had its ratings cut by Morgan Stanley, with the financial giant warning that hardware original equipment manufacturers (OEMs) such as HPE historically face gross-margin compression six months to a year after memory costs begin rising.

HPE has seemingly yet to comment on these pressures, as opposed to HP, which said it would diversify its supplier base as well as lower memory configurations in certain product lines.

The firm will also be implementing price increases, its CEO said.