HPE plans to slice 5,000 jobs to cut costs

Hewlett Packard Enterprise tries to save money to become a more efficient and competitive company

Hewlett Packard Enterprise (HPE) is planning on cutting 5,000 people from its workforce to cut costs in the face of growing market competition.

The Palo Alto based company plans to cut back up to 10% of its 50,000 employees starting at the end of this year, affecting people from the US as well as overseas, according to an anonymous source that tipped-off Bloomberg to to the cutbacks. 

The job cuts could also potentially affect those in higher positions such as managers, and they come as part of a larger effort to save money within the company as Tim Stonesifer, the company's chief financial officer, said the plan is to save HPE $1.5 billion over a three-year period.

This new set of cut backs follows the somewhat recent division of HP, into HP Inc and HPE, which lead to the loss of 30,000 jobs in September of 2015 in a plan to save $200 million to $300 million annually by 2020, and the subsequent announcement in 2016 that HP Inc plans on cutting 3,000-4,000 jobs within the next few years.

HPE explained this is in an attempt to be more competitive in a changing industry, especially in the face of cloud technology, specifically those of Amazon Web Services and Google.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

Additionally, chief executive officer Meg Whitman believes that by decreasing the divisions within the company, as it has by abandoning departments such as personal computers, printers, business services and key software units, HPE will become more efficient.

Earlier this month she stated that, "With fewer lines of business and clear strategic priorities, we have the opportunity to create an internal structure and operating model that is simpler, nimbler and faster."

Featured Resources

How inkjet can transform your business

Get more out of your business by investing in the right printing technology

Download now

Journey to a modern workplace with Office 365: which tools and when?

A guide to how Office 365 builds a modern workplace

Download now

Modernise and transform your sales organisation

Learn how a modernised sales process can drive your business

Download now

Your guide to managing cloud transformation risk

Realise the benefits. Mitigate the risks

Download now
Advertisement

Recommended

Visit/strategy/28233/everything-you-need-to-know-about-hpe
Business strategy

Everything you need to know about HPE

14 Feb 2020
Visit/strategy/29101/six-ways-boards-can-step-up-support-for-cyber-security
Business strategy

Six ways boards can step up support for cyber security

27 Jan 2020
Visit/hardware/354336/the-it-pro-products-of-the-year-2019-all-the-years-best-hardware
Hardware

The IT Pro Products of the Year 2019: All the year’s best hardware

24 Dec 2019
Visit/cloud/public-cloud/354255/hpe-takes-on-public-cloud-with-greenlake-central
public cloud

HPE takes on public cloud with GreenLake Central

3 Dec 2019

Most Popular

Visit/mobile/28299/how-to-use-chromecast-without-wi-fi
Mobile

How to use Chromecast without Wi-Fi

5 Feb 2020
Visit/operating-systems/microsoft-windows/354789/microsoft-pulls-disastrous-windows-10-security-update
Microsoft Windows

Microsoft pulls disastrous Windows 10 security update

17 Feb 2020
Visit/operating-systems/27717/how-to-fix-a-stuck-windows-10-update
operating systems

How to fix a stuck Windows 10 update

12 Feb 2020
Visit/cloud/cloud-computing/354767/google-cloud-snaps-up-multi-cloud-analytics-platform-for-26bn
cloud computing

Google Cloud snaps up multi-cloud analytics platform for $2.6bn

13 Feb 2020