HP’s decision to lay off thousands of employees is sending ripples across the tech industry. As a female founder and entrepreneur running bootstrapped ventures, strategies like these push me to evaluate how innovation interacts with human capital, it’s not simply about cutting costs but about rethinking priorities. For those like me, navigating the intersection of business, labor, and emerging technologies offers lessons that extend far beyond the numbers.
What Happened?
By fiscal year 2028, HP plans to eliminate between 4,000 and 6,000 jobs, representing up to 10% of its workforce. The strategy revolves around saving $1 billion annually through artificial intelligence, a move framed as boosting productivity, streamlining operations, and enhancing customer outcomes. According to HP’s CEO, Enrique Lores, the layoffs aim to fund AI advancements that promise faster product innovation and improved service delivery.
From a startupper’s perspective, hearing "AI" alongside "reduced workforce" triggers a mix of curiosity and concern. AI’s promise is undeniable, but what’s the price of progress when people lose their incomes?
Lessons Female Entrepreneurs Should Learn
-
Understand the Cost of Growth: Scaling or pivoting doesn’t always mean adding resources, it may involve redistributing them. HP’s approach shows how automation might compete directly with human labor. For bootstrapped businesses, the takeaway is that cutting costs shouldn’t overshadow the impact on your team and culture.
-
Automation Isn’t Always Immediate: Reports like Gartner’s suggest AI adoption across IT workloads will rise significantly, but humans remain essential in most scenarios. If you’re adopting AI, prepare your business for a slow yet strategically meaningful transition.
-
Keep People Ahead of Technology: Whether you're building a startup team or managing freelancers, don’t fall into the trap of seeing talent as replaceable. People drive culture and brand identity, qualities AI cannot replicate.
-
Plan Beyond the Present: HP projects savings through AI into 2028. As small business owners, that long-term horizon is essential. Consider future-proofing strategies while ensuring current actions steer your business toward stable growth.
How to Balance AI Adoption With Human-Centered Management
Here’s a quick guide if you’re thinking about introducing automation tools in your business without sidelining your team:
- Start small: Explore AI-powered assistants for routine tasks like data sorting or customer inquiries. Tools like F/MS Startup Game's Elona AI simplify workflows without alienating employees.
- Invite feedback: Before automating processes, involve your team. Collaboration leads to innovation while maintaining morale.
- Reallocate resources: Consider placing freed-up human talent into creative or strategic roles instead of cutting staff.
- Communicate transparently: Like HP, tie your AI investments to achievable goals but ensure employees understand the positive outcomes for them, too.
Why Numbers Matter
When examining HP’s financial restructuring plans, the data points are striking. Their projection includes $650 million in restructuring costs, a significant chunk expected to hit fiscal 2026. For solopreneurs watching similar movements, this illustrates how scaling decisions require upfront investment before delivering savings.
Big tech companies like Amazon and Salesforce report similar patterns: layoffs tied to AI optimization. A firm like Amazon recently faced backlash after replacing domestic jobs with H-1B hires while claiming efficiency gains through AI. As reported by Ars Technica, this raises ethical questions that startups must also consider, how responsible is your growth model?
Common Pitfalls to Watch For
Here are missteps HP and others have showcased that we, as startup founders, must avoid:
-
Over-promising AI capabilities: If adopting AI tools, test them diligently. HP claims faster product delivery, but letting tech underdeliver may erode customer trust.
-
Ignoring stakeholder impact: Sudden layoffs risk backlash. When making changes, find balance between internal and external expectations.
-
Underestimating the human role: HP mentions productivity gains, but ignoring the irreplaceable human contribution slows innovation long-term.
Final Reflections
When I look at stories like HP's, they remind me why I built initiatives like the Fe/male Switch. There’s immense opportunity in reshaping business models with technology, your startup doesn’t need to subscribe to industry short-sightedness. My approach, blending AI with game design through human creativity, exemplifies this balance. AI isn’t here to replace what makes us unique; it’s here to amplify outcomes when used thoughtfully.
So as these tech giants proceed, entrepreneurs like us have the responsibility to lead differently. It's not about sidelining humans for tools. Instead, it’s about creating new avenues where both fit in harmony.
FAQ
1. Why is HP laying off thousands of employees?
HP plans to lay off 4,000 to 6,000 employees by 2028 as part of a broader strategy to save $1 billion annually by adopting AI for process efficiency, improving customer satisfaction, and accelerating product innovation. Read more about HP's strategy
2. How is AI being integrated into HP's operations?
HP’s AI initiatives aim to replace traditional workflows across departments such as product development, internal operations, and customer support, with a focus on boosting productivity and enhancing customer outcomes. Learn more about HP's AI plans
3. What is the expected financial outcome of these changes?
HP projects $1 billion in annual savings by 2028, with $650 million in restructuring costs, $250 million of which will occur in fiscal year 2026. See HP's financial restructuring details
4. What departments at HP are most affected by these layoffs?
The layoffs will primarily impact teams focused on product development, internal operations, and customer support. Read about targeted departments
5. How does HP's move compare with layoffs by other companies?
Similar strategies have been observed with Amazon, Salesforce, and Meta, where AI investments are linked to significant workforce reductions. For example, Amazon recently replaced domestic positions with H-1B hires while investing in AI. Learn about Amazon's layoffs
6. How does AI adoption affect timelines?
While AI introductions promise productivity, transitioning is not immediate. Experts recommend strategic planning and phased implementation for businesses aiming to adopt AI effectively. Explore Gartner's insights
7. What is the ethical implication of using AI for layoffs?
Critics argue the ethics of automating at the expense of jobs. Ethical concerns emphasize the need for responsible business strategies balancing human capital and technological advancement.
8. Will AI create more jobs than it eliminates in the long run?
The World Economic Forum predicts AI will create 78 million more jobs than it eliminates by 2030, highlighting the potential for new opportunities despite short-term workforce disruptions. Explore WEF's findings on AI job impact
9. How can small businesses leverage AI without cutting jobs?
Small businesses can start with AI tools to optimize routine tasks while reallocating human talent to creative or strategic roles. Transparency and collaboration with team members can maintain morale. Check out Elona AI for startups
10. What lessons can entrepreneurs learn from HP's decision?
Entrepreneurs should focus on cost efficiency without sacrificing team dynamics. AI should complement human talent and support long-term, sustainable growth, rather than becoming a short-sighted cost-cutting tool. Learn about balanced entrepreneurship strategies
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
