Tech giant announces layoffs amid cost-cutting, betting big on artificial intelligence to stay competitive in a rapidly evolving market.
Palo Alto, CA – Hewlett-Packard Enterprise (HPE) revealed plans on November 25, 2025, to cut approximately 6,000 positions by 2028. The move, detailed in an earnings call, aims to redirect savings toward AI infrastructure. Shares rose 3% post-announcement, reflecting investor optimism.
What Happened?
CEO Antonio Neri cited “AI acceleration” in the Q4 report, with $1.2B in projected savings. Layoffs target non-core roles; early reports indicate voluntary buyouts first. Affected employees, per union reps, span sales and admin in hubs like Texas and California.
The news follows a strong quarter, with AI server demand up 40%.
Official Statements / Reactions
Neri stated, “This streamlines for innovation, as our board approved.” Unions decried it; AFL-CIO’s Ted CRC called for “worker protections.” Biden admin labor secretary Julie Su urged retraining funds. Tech peers like Dell echoed similar pivots.
Why This Matters
AI investments hit $200B globally; U.S. jobs in flux, with 100,000 tech cuts YTD. For workers, it means reskilling urgency; consumers gain cheaper AI tools. Broader economy: boosts GDP but widens inequality.
Background / Context
HPE’s 2015 spin-off from HP Inc. focused hardware; AI boom, per Gartner, demands agility. Past layoffs (5,000 in 2023) set precedent. Trump’s pro-tech policies may ease regulations.
Current Situation / What’s Next
Severance packages out; Q1 2026 AI product launches. SEC filings due December. Job fairs announced in key states.
Watch Fed’s AI impact report; union negotiations ongoing.
Conclusion
HP’s cuts highlight tech’s AI pivot – painful but forward. As Neri said, “Change is constant.” Hope lies in upskilling for all.