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Hewlett Packard Enterprise Plans to Cut 5,000 Jobs

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Hewlett Packard Enterprise (HPE) will cut 10% of their workforce, or roughly 5,000 people, as competition continues to put pressure on the company. The effort is an opportunity to cut expenses.

The reduction in staff will impact workers in the United States and abroad. The workforce cut will occur before the end of the year.

Hewlett Packard, run by CEO Meg Whitman since 2011, is trying to adapt to the changing marketplace that has been interrupted by Amazon (AMZN) and Alphabet (GOOGL). Experts expect the job cuts to impact the company's financials for up to two quarters.

Whitman stated earlier in the month that HP has been able to improve and meet growing demand in key areas of the company. Whitman also stated that the company plans to cut many layers of the organization to become more efficient.

Chief Financial Officer Time Stonesifer states that HP plans to save $1.5 billion over a three-year period. The 5,000 job cuts will assist the company in their savings goal.

Whitman has worked to reduce the company's divisions since 2015. She has reduced Hewlett Packard's offerings for business services, software, printers and computers. The company is working to compete with cloud providers.

The company is expected to hold online industrial auctions to further reduce assets related to the job cuts.

Global workforce cuts were announced two weeks after HPE released their latest quarterly results. The company's earnings per share rose to $0.30, versus expectations of $0.26 earnings per share. The company's revenue also rose to $8.21 billion, surpassing analyst forecasts of $7.49 billion.

The earnings were released at a time when Whitman was rumored to be pursued by Uber. Whitman has shot down the rumors, stating that she plans to stay with HPE.

"The results of the third quarter are an encouraging sign of the progress we are making," Whitman was quoted as saying. "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" she stated in the company's press release.

HP's revenue grew by 3% without adjustments and 6% when considering adjustments for divestitures. The company expects earnings per share to fall between $0.26 and $0.30 in the final quarter of the year. Analysts have the company earning $0.40 per share in the final quarter of the year with revenue of $7.74 billion.


This article was written by Adam Monson for on .

This article published in collaboration with Scutify, the best app for traders and investors. Download the Scutify iOS App, the Scutify Android App or visit Scutify.com.

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