Hewlett Packard Enterprise to Cut 10% of Workforce
22 September 2017 - 1:41PM
Dow Jones News
By Rachael King
Hewlett Packard Enterprise Co. plans to cut its workforce by
10%, according to a person familiar with the plans, the latest cost
cuts as the business-technology giant combats increasing
competition and higher component prices.
The cuts, which will trim about 5,000 jobs, are to start by the
end of this year. They could be a prelude to more layoffs, the
person said, as HP Enterprise continues its HPE Next initiative, a
three-year plan announced in June to take out $1.5 billion in gross
costs and shift resources toward areas such as research and
development.
Chief Executive Meg Whitman has remade the company formerly
called Hewlett-Packard, through a series of splits and divestitures
including the largest breakup in corporate history -- which created
HP Enterprise and a PC-and-printer business called HP Inc.
Hewlett-Packard had about 350,000 workers when she took the helm
in 2011. HP Enterprise today has about 52,000, after several huge
spinoffs and tens of thousands of layoffs.
This year's layoffs are part of a separate plan to cut $200
million to $300 million in costs during the second half of the
year. Ms. Whitman has said that the retooling effort will continue
with HPE Next.
"We are actually clean-sheeting both the operating model and the
organizational structure to simplify how we work," Ms. Whitman said
on an earnings call earlier this month.
Part of the new plan will be to decrease layers in the company's
customer-facing organizations so that there is more accountability
and decision-making closer to the customers, she said.
The planned layoffs were reported earlier Thursday by Bloomberg
News.
(END) Dow Jones Newswires
September 21, 2017 23:26 ET (03:26 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Hewlett Packard Enterprise (NYSE:HPE)
Historical Stock Chart
From Apr 2024 to May 2024
Hewlett Packard Enterprise (NYSE:HPE)
Historical Stock Chart
From May 2023 to May 2024