In a rapidly changing tech landscape, HP, the renowned computer manufacturer, has made headlines with its latest announcement. The company is not just embracing artificial intelligence (AI); it’s also implementing significant workforce reductions, laying off between 4,000 and 6,000 employees by the end of 2028. This marks a troubling shift that reflects broader trends in the role of AI in the workplace.
HP revealed on Tuesday that its plans for scaling AI technology come alongside a workforce reduction of approximately 10%, impacting around 4,000 to 6,000 of its 56,000 employees. In their press release, HP CFO Karen Parkhill stated, “Looking forward, we are taking decisive actions to mitigate recent cost headwinds while investing in AI-enabled initiatives to accelerate product innovation, improve customer satisfaction, and boost productivity.” The layoffs are expected to focus on product development, internal operations, and customer support teams.
This wave of job cuts raises the critical question: Is AI driving mass unemployment in 2025? Many companies are cautiously reducing their hiring efforts, and some, like HP, are openly associating job losses with their AI initiatives. Job security has become an unsettling concern in an already grim job market.
As Jerome Powell, the Federal Reserve Chair, noted in September, AI is “probably a factor” contributing to the substantial slowdowns in hiring, particularly affecting new graduates who are facing increasing difficulties in securing employment. A study from Stanford supports this notion, indicating that younger workers aged 22 to 25 in AI-exposed roles are experiencing the most severe job losses. Jobs in areas most susceptible to automation are often held by these recent graduates, leading experts to worry about long-term societal impacts due to missed training opportunities.
Moreover, companies have not shied away from attributing layoffs directly to AI. For instance, Chegg recently slashed 45% of its workforce, citing “new realities of AI.” Similarly, Amazon’s layoffs of 14,000 white-collar jobs initially linked to AI technology were later described as unrelated to AI or financial concerns.
Many industry leaders are vocal about their hiring strategies evolving in favor of automation. Shopify’s CEO Tobias Lütke and Duolingo’s CEO Luis von Ahn have both made statements reflecting their intent to rely more on AI rather than expanding their workforce. Even PwC’s global chairman recently abandoned plans to hire 100,000 employees due to the integration of AI capabilities.
Yet, not all experts agree with this AI narrative. New York University management professor Robert Seamans pointed out that implementing AI is much more complex than many assume. Companies frequently lack the in-house expertise needed to deploy and supervise AI systems effectively. Without the proper talent, relying heavily on AI can be problematic. An MIT report further emphasizes this point, revealing that many corporate AI projects might not yield the expected revenue gains.
While some see AI as a scapegoat for layoffs tied to broader economic uncertainties, Palantir CTO Shyam Sankar referred to the “AI will take your job” narrative as merely a fundraising gimmick within Silicon Valley.
Conversely, author Cory Doctorow suggests that instead of replacing workers, AI serves as a leveraging tool for management, invoking fear to encourage increased productivity among employees. It presents employers with an opportunity to impose stricter expectations, as they can suggest that AI could easily replace workers who do not meet those standards.
How do these trends affect future employment opportunities? Will younger workers remain in the job market, or will they be sidelined by advancements in technology? The answer to these questions holds the key to understanding the future of work in an AI-driven world.
Is artificial intelligence actually leading to job losses?
Yes, many companies are cutting jobs in favor of AI implementation, often citing it as a contributing factor to layoffs.
How are young professionals affected by AI job cuts?
Younger workers, particularly those in entry-level positions, are facing significant challenges in securing employment, as roles easily automated often comprise those young graduates hold.
What steps are companies taking to integrate AI?
Many firms, like HP and Chegg, are investing in AI while simultaneously reducing their workforce in areas like product development and customer support.
Can AI serve as a scapegoat for layoffs?
Some experts believe companies use the AI narrative to justify workforce reductions tied to economic issues that are less easily explained.
What does the future hold for job seekers in an AI-driven market?
The evolving landscape poses a dilemma where young professionals must navigate both the potential benefits and threats posed by the rise of AI in the workplace.
As we delve deeper into these unfolding trends, it’s essential to stay informed and explore how emerging technologies are reshaping not just our industries but the very fabric of job security. For more insightful discussions on technology’s role in the workforce, continue exploring related content on Moyens I/O.