HP Layoffs in Canada: What Employees Need to Know About Severance

On November 25, 2025, HP confirmed a major global restructuring that will eliminate 4,000 to 6,000 jobs by the end of fiscal 2028. This multi-year reduction is tied to HP’s shift toward AI-driven operations, rising production costs, and weaker-than-expected earnings forecasts.

According to HP’s earnings disclosures and executive comments:

• HP will cut 4,000–6,000 roles globally by fiscal 2028 (Reuters)
• Cuts represent up to 10% of its global workforce (HRD America)
• The restructuring aims to generate $1 billion in annual savings through AI adoption and workforce reductions
• HP expects $650 million in restructuring costs, with $250 million hitting fiscal 2026 (Yahoo Finance Canada)
• Job cuts will affect product development, internal operations, and customer support teams
• HP previously cut 1,000–2,000 employees in February 2025 as part of an earlier restructuring plan

While HP has not broken out Canada-specific numbers, reductions at global tech companies almost always impact Canadian corporate teams, sales operations, support roles, and engineering groups.

This guide explains what Canadian HP employees should know about their rights, severance entitlements, and next steps if they are affected by this restructuring.

Who HP May Lay Off in Canada

HP’s restructuring focuses on simplifying operations and accelerating AI enablement. Based on HP’s filings and executive comments, impacted roles may include:

• Product development teams
• Internal operations (process, efficiency, administrative support)
• Customer support teams
• Corporate support units tied to affected divisions
• Technical and engineering roles supporting device development or AI-related systems
• Sales and account support roles that may be consolidated as HP adopts more automation

These cuts follow additional factors placing pressure on HP’s cost structure

• Rising memory chip prices linked to demand from AI data centres
• Slower projected earnings for fiscal 2026, with profit expectations dropping below analyst forecasts

Any of these global business pressures can translate into reductions affecting Canadian-based staff or teams servicing Canadian customers.

What These Layoffs Mean for HP Employees

In Canada, a corporate “restructuring,” “job elimination,” or “role no longer required” at HP is usually a termination without cause under Canadian law — even if HP calls it a layoff or reorganization.

That means HP typically owes you:

• Full severance pay, based on your common law entitlements – not just government or employment standards minimums
• Notice or pay in lieu of notice
• All components of your normal compensation, which may include:
  • Base salary
  • Benefits (health, dental, RRSP/TFSA matching, etc.)
  • Short-term and long-term bonuses
  • RSUs, stock options, ESPP contributions and other equity
  • Vacation pay and any outstanding commissions

Severance Packages for HP Employees

In Canada, severance for non-unionized HP workers is based on common law, which looks at factors such as:

• Your length of service with HP
• Your age
• Your position, seniority, and scope of responsibility
• The availability of comparable jobs in the market

Depending on these factors, HP employees in Canada can receive up to 24 months of severance pay under common law.

HP may present a “standard” package that:

• Offers only ESA minimums (far less than common law entitlements)
• Ignores RSUs, stock options, ESPP and long-term incentives
• Under-values commissions or variable compensation
• Gives a short deadline (e.g., 5–10 days) to sign
• Provides a lump sum or salary continuation with limited explanation

This is why you should never assume HP’s first offer is fair. Having a severance package reviewed is often the difference between a few months of pay and potentially up to 24 months of total compensation.

Potential Issues With Layoff Notices

Common problems we see when HP employees are laid off include:

• Incorrect severance calculations that only consider ESA minimums
• Insufficient notice relative to your years of service and seniority
• “Temporary layoff” language used without a clear contractual right to do so
• Unclear handling of RSUs, stock options, ESPP and bonuses
• Short deadlines designed to pressure quick acceptance
• Incomplete breakdowns of how HP arrived at the severance figure

Any one of these issues can be a sign that your offer is below your legal entitlement under Canadian law.

Common Red Flags in HP Severance Offers

Be especially cautious if your severance package from HP:

• Includes only a few weeks or a handful of months of pay after many years of service
• Does not continue benefits for a reasonable period
• Leaves RSUs, stock options, ESPP or long-term incentives out of the calculation
• Does not clearly explain how bonuses and commissions are treated
• Describes your termination as “restructuring” or “realignment” but still ends your employment permanently
• Comes with a 24–72-hour deadline or other intense pressure to sign
• Asks you to sign away rights (including future claims) in exchange for basic amounts you are already owed

If you see these red flags, don’t sign until you’ve obtained advice from an employment lawyer.

Wrongful Dismissal and HP Layoffs

A wrongful dismissal happens when an employer like HP fails to provide the full severance pay required under common law after terminating a non-unionized employee without cause.

You may have a wrongful dismissal claim against HP if:

• Your severance package is far lower than what similar employees receive in court decisions
• Your employment contract’s termination clause is unenforceable under current Canadian case law
• You are pressured to sign quickly with threats that the offer will “disappear”
• You are let go during maternity, parental, disability, or medical leave
• They label the situation as a “temporary layoff” with no realistic recall and no valid contractual basis
• They don’t to recognize RSUs, bonuses, commissions or benefits in the severance calculation

Even during large-scale corporate restructuring, employees maintain individual severance rights.

What to Do After HP Lays You Off

If HP has just given you notice of termination or a severance offer:

1. Do not sign anything right away. Signing usually waives your right to seek more severance later.
2. Collect all relevant documents:
   • Offer letter and employment contracts
   • Commission plans, bonus policies and equity grant agreements (RSUs, options, ESPP)
   • Recent pay stubs and T4s
   • Any emails or memos about your role, performance, or restructuring
3. Use the Severance Pay Calculator to get a quick estimate of what you may be owed under Canadian law.
4. Take notes about your duties and responsibilities, especially if you held a specialized or senior role (e.g., enterprise account manager, senior solutions engineer, sales leader).
5. Speak with an employment lawyer who works for employees (not employers) to assess whether HP’s offer reflects your full common law entitlement.

In most provinces, you may have up to two years from the date of termination to pursue a legal claim — but the deadline in your severance letter is often an internal HP timeline, not a legal one.

How Samfiru Tumarkin LLP Can Help With HP Layoffs

If HP has laid you off — or if you are concerned that upcoming restructuring might affect your role — talk to an employment lawyer before you sign anything.

Samfiru Tumarkin LLP has helped over 50,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 five-star reviews across the country.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.