Hewlett Packard Enterprise to cut 5,000 jobs: report

When Hewlett Packard Enterprise CEO Meg Whitman said earlier this year that she wanted to cut out “layers” from the company, it wasn’t exactly clear what that would mean.

It’s still not clear, but a new report indicates that thousands of jobs will be lost as Whitman carries out her work at the company.

The reported cuts would dwarf the 600 layoffs the firm reported last year to California authorities, and would eliminate some 5,000 employees — 10 percent of its workforce, the report said.

“The cuts at the company, which has about 50,000 workers, are likely to affect workers in the U.S. and abroad, including managers,” Bloomberg reported, based on unnamed sources.

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Such a large reduction in headcount would certainly help meet the goal that chief financial officer Tim Stonesifer earlier this year said the company had set — saving $1.5 billion over three years.

And Whitman’s plan to excise “layers,” she said at the time, would lead to “fewer lines of business” and bring “the opportunity to create an internal structure and operating model that is simpler, nimbler and faster.”

Whitman has been “jettisoning divisions” since she oversaw the 2015 split of Hewlett-Packard into HP and Hewlett Packard Enterprise, getting rid of PCs, printers, business services and some software units, Bloomberg reported.

“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,” according to Bloomberg.

Hewlett Packard Enterprise did not immediately respond to a request for comment on the reported job cuts.

 

Photo: Hewlett Packard Enterprise CEO Meg Whitman in 2010. (Dai Sugano/Bay Area News Group)

 

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  • lnon

    Meg starts yet another drive to the bottom. She continues to sell off pieces of the company, fire people, and reduce revenues. What a great leader!! What a sad thing to witness happening to one of the once legendary companies of Silicon Valley. Why is she still there when she would rather be elsewhere (like Uber, perhaps)? Time for their pathetic board to do their job and replace her, before the company gets so small that maybe even Meg can manage it effectively.

 
 
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