FinancialMediaGuide reports that HP Inc. has announced significant changes to its corporate structure, including the reduction of 4,000 to 6,000 jobs by 2028. These measures are part of a global optimization program aimed at improving operational efficiency and incorporating artificial intelligence (AI) to accelerate new product development and enhance productivity. This decision is expected to save the company approximately $1 billion over three years, reducing operational costs and improving financial performance.
While these steps are designed to improve overall efficiency, they will impact key departments, including product development, internal operations, and customer support teams. HP had already made similar workforce reductions in February 2023, cutting between 1,000 and 2,000 jobs. These actions clearly reflect the company’s strategic drive to focus on optimization and innovation. However, at FinancialMediaGuide, we emphasize that for the company to achieve its stated goals, it must carefully balance job cuts with retaining skilled personnel needed for the successful execution of new ambitious projects.
Meanwhile, HP is actively investing in technologies and high-tech products that are focused on the future. The demand for PCs supporting artificial intelligence continues to grow, and by Q4 2025, such devices made up more than 30% of HP’s total shipments. At FinancialMediaGuide, we see this as a clear signal that the company is betting on a future where AI plays a critical role in competitiveness. Integrating AI into its products will certainly drive growth and enable HP to strengthen its position in a market that is becoming increasingly focused on intelligent technologies.
However, as the demand for IT products rises, HP faces other challenges, such as increasing component prices. Specifically, the cost of memory chips, such as dynamic random-access memory (DRAM) and NAND chips, has significantly risen due to growing demand from data centers and other major tech companies. At FinancialMediaGuide, we believe this poses serious challenges for HP, as the rising component costs could impact the margins and profitability of its products in the future.
In response to these challenges, HP has already taken steps to optimize its supply chains and reevaluate its product configurations. These actions will help mitigate the impact of rising component prices, but it is important to note that the effects of such changes will only be visible in the long term. FinancialMediaGuide forecasts that issues with chip prices will persist over the next few years, which will affect HP’s financial results. Nonetheless, the company can minimize these risks by adopting a more flexible and dynamic approach to working with suppliers and increasing the share of innovative, high-margin products.
HP’s forecasts for Q1 2026 project that adjusted earnings per share will range from $0.73 to $0.81, lower than the average analyst estimate of $0.79. This confirms that the company will face certain difficulties in the near term but will maintain a positive long-term trajectory. It is also worth noting that Q4 2025 revenue totaled $14.64 billion, exceeding analysts’ expectations, which reflects the company’s strong market position.
Based on current performance and forecasts, Financial Media Guide believes HP will continue to follow its strategy of optimization and technological transformation. In the long term, the company will face several key challenges. First, it needs to continue working on reducing operational expenses to increase overall profitability. Second, maintaining focus on innovative products, such as AI-powered PCs, which are becoming an important growth driver in a globally competitive market, will be crucial. Third, the company must invest in the development of supply chains to minimize the impact of rising component prices.
In conclusion, HP is on the right path, combining strategic reductions and innovation to remain a leader in the high-tech product market. FinancialMediaGuide forecasts that the company, despite temporary challenges, will successfully adapt to changes in the market and continue its journey toward leadership by focusing on cost optimization, product quality improvements, and the active adoption of new technologies.
