HPE to axe 10 per cent of workforce - report

CEO Whitman set to continue 'reducing the layers' in HPE with 5,000 job cuts, reports Bloomberg

Hewlett Packard Enterprise (HPE) is planning to slash its workforce by 10 per cent, according to news agency Bloomberg.

Citing "people familiar with the matter", Bloomberg claims that HPE is planning to cut 5,000 people from its circa 50,000-strong workforce, as CEO Meg Whitman presses forward with her restructure of the HPE business.

On several of HPE's recent earnings calls, Whitman has referred to "reducing the layers" of HPE's business as the vendor looks to save $1.5bn (£1.1bn) over the next three years.

Bloomberg's sources claim that HPE will start the cuts before the end of the year, with HPE employees globally thought to be at risk.

CRN has contacted HPE for comment.

Shrinking to success

HPE has shed various arms and units over recent years - first separating its PC and printer business, before offloading its services and software businesses - with Michael Dell mocking the firm for trying to "shrink [its] way to success".

The reshaping has already had a significant impact on HPE's headcount.

On the most recent earning calls, CFO Tim Stonesifer said that 110,000 employees left the vendor when its software business merged with Micro Focus, leaving it with "50,000 or 60,000" employees.

HPE also sold its Roseville, California campus earlier this year, reportedly leading to the loss of 115 jobs.

The cuts have however been on the cards since before the predecessor HP business was split in two.

In 2015, before the split, HP said that it planned to cut nearly 90,000 over a three-year period, with the bulk of the cuts coming from HPE.

CRN also reported on various HP job cuts in 2013 (here and here), and 2014.