HPE Layoffs 2017: HP Enterprise Plans 5,000 More Job Cuts
HP Enterprise (HPE) plans to cut about 5,000 jobs or 10 percent of its workforce starting later this year, according to Bloomberg. The enterprise technology and data center company has not commented on the report.
Without directly mentioning layoffs, CFO Tim Stonesifer earlier this month told Wall Street analysts that the company is “committed to $1.5 billion of gross savings over the next three years,” though he added, “Keep in mind that this is a gross savings number and the net savings could be impacted by incremental investments, ongoing commodity pressure and a continued competitive pricing environment.”
Stonesifer made the comments during HPE’s most recent earnings call.
HPE’s Layoff History, Business Evolution
HPE, like many enterprise hardware giants, has been no stranger to layoffs. The company in 2016 cut some positions before selling off some software assets to Micro Focus.
Critics say the company remains too dependent on hardware amid the global shift toward cloud services and recurring revenues. But HPE’s overall business outperformed Wall Street’s expectations in the company’s most recent quarter. Demand for the company’s networking equipment was particularly strong. And recent acquisitions like SimpliVity for hyperconverged infrastructure (HCI) and Nimble Storage for all flash array technology.