At least 5,000 workers are set to lose their jobs at Hewlett Packard Enterprise as the company plans to slash 10 per cent of its workforce. According to Bloomberg, the reductions are expected to begin before the end of the year and will finish within the first quarter of 2018.
Job cuts are expected to encompass all areas of the business with managers roles also under threat. Although unconfirmed the cuts will affect both the US workforce as well as those working abroad.
Chief Executive Officer Meg Whitman has been pushing for cuts since 2015, slimming down workforce in departments such as personal computers, printers, business services and key software units. She claims that the cuts are essential to making HPE more competitive against other cloud providers such as Amazon and Google.
Earlier this month she said that she is pushing to ‘cut layers’ in order for the organisation to become more efficient. “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,” she said. At the same time, chief financial officer Tim Stonesifer said the company is targeting $1.5 billion in savings over a three-year period.
Earlier this month Hewlett Packard Enterprise (HPE) finally managed to shake off the disastrous legacy of its Autonomy acquisition with the successful spin-off of its software business. The company has now narrowed its focus to data centre software and hardware.