Thursday, October 19, 2017

HPE set to cut 5,000 jobs – report

First staff could be sent home just before Christmas.

HPE (NYSE: HPE) is lining up to send home 10% of its workforce amounting to 5,000 jobs, according to people familiar with the matter speaking to Bloomberg.

The sources said the job losses are part of the company’s wider plan to trim capital expenditure as market competition from players such as Google and AWS amounts around cloud.

If confirmed by the company, which has yet to comment on the issue, staff in the US and overseas will begin being sent home before Christmas, the sources said.

Between those set to be dismissed are business managers, the people familiar with the matter said.

HPE CEO Meg Whitman has previously set out the company’s plan to save up to $1.5bn.

To achieve such savings, the executive said she would be “reducing the layers” of HPE.

The company closed Friday on a high, with stock growing to 3.41% or $14.26 per share.