Hewlett Packard Enterprise is planning to lay off about 10 percent of its staff, or at least 5,000 workers as part of a wider effort to cut expenses as competition rises.
The layoffs are expected to begin before the end of the year, said the people, who asked not to be identified because the matter is confidential.
The layoffs at the company, which has about 50,000 workers, are likely to affect workers in the U.S. and abroad, including managers, the people said. A Hewlett Packard Enterprise representative didn’t immediately respond to requests for comment.
In its short two years as an independent organization, HPE has already carried out several rounds of layoffs. HPE Chief Executive Officer Meg Whitman announced a major restructuring in June 2016, which saw the departure of numerous company veterans and the consolidation of its sales organization.
Whitman has been dumping divisions since 2015, including personal computers, printers, business services and key software units. The moves are all part of an effort to make HPE more responsive to a changing industry that’s under pressure from cloud providers such as Amazon.com Inc. and Alphabet Inc.’s Google.
HPE, which focuses on servers, software, and consulting services for businesses, has offices around the world, including in China, Brazil, and Switzerland. It split from Hewlett Packard in 2015 to become a separate company under Whitman.
Under CEO Meg Whitman, the company has been efficient, shedding much of its Chinese business and consulting division. But investors haven’t warmed too dramatically to the changes, with shares up just over 2.5 percent in the past year.
On a call with analysts earlier this month, Whitman said the Palo Alto, California-based company is benefiting from growing demand across key areas of the business. At the same time, she said she’s pushing to cut “layers” in the organization and 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.
Want to become an investor/trader in the stock market? Fill yourself in on marketing news by subscribing to HQBroker. We encourage traders to know more about the latest information about forex, stock markets, commodities, and economies.