Reports suggest HPE plans to cut 10 percent of its workforce amid intensifying IT competition
HPE plans to lay off ten percent of its global workforce, according to a report, in a bid to reduce costs and be more competitive in the IT sector.
According to Bloomberg, as many as 5,000 workers could be let go both in the US and abroad before the end of the year.
Silicon has contacted HPE for comment.
HPE job cuts
HPE has spent the past few years in transition, having been formed by the split of HP into two separate companies. HPE retained the core enterprise business, such as servers, storage and networking, while HP Inc took on the PC, printer and hardware unit.
A further divesture saw HPE sell its enterprise services business was to CSC last year, while HPE’s non-core software assets to MicroFocus in a £6.7 billion deal completed earlier this month.
However despite ongoing restructuring which saw net profit fall from £1.8 billion to £126 million, HPE’s most recent set of results beat expectations as sales rose 2.5 percent to £6.4 billion.
“The results of the third quarter are an encouraging sign of the progress we are making,” said Whitman earlier this month.
“With better execution we drove overall revenue growth, exceeded our EPS targets and improved our operating margins sequentially, all while completing the spin-merge of our Software business. There’s more work to do, but we are on the right track.”
Whitman herself has been under scrutiny of late. She has been in charge of HPE for a number of years now and had been linked to the position of CEO of taxi firm Uber, after the departure of Travis Kalanick.
Despite the speculation, Whitman had ruled herself out of the running, and Expedia chief Dara Khosrowshahi was selected to replace Travis Kalanick.Whitman has also recently stepped down from the board of HP Inc.
HPE meanwhile has also announced that it has acquired consulting firm Cloud Technology Partners.