- 2,500 HPE workers lose their job by redundancy, another 500 by wear
- Revenue in next quarter
- HPE’s Juniper -Availing Causes Another Headache for the Company
Hewlett Packard Enterprise (HPE) has revealed that it is set to dismiss an estimated 2,500 workers after disappointing financial performance.
CEO Antonio Neri confirmed that estimated 3,000 workers could leave the company where the remaining 500 come in the form of wear (via Bloomberg).
The news followed a 19% dip in extended trade shares yesterday after the company issued weak guidance in its earnings call.
HPE set to ax up to 3,000 workers
Reducing its workforce is estimated to cost HPE about $ 350 million over the next two years, the company confirmed, but it hopes to see the benefits of 2027.
“We are pleased that we fulfilled our revenue guidance estimate when we navigated in the quarter,” said HPE CFO Marie Myers, noting that the company generated $ 7.9 billion in its recent three -month period, ending 31 January 2025.
“We took actions during the quarter to streamline costs, which helped us offset other impacts on profitability. We continue to adapt our strategy and execution with long -term growth trends that will burn our performance, ”myers added.
HPE says it predicts a turnover of $ 7.2 billion to $ 7.6 billion in the next quarter – even the higher number would mark a decrease.
Although AI-driven demand has increased, expensive AI components have led to lower than ideal margins. HPE also ended up with excess stock as Nvidia transfers to Blackwell GPUs and unnecessarily added to the cost of heavy discounts for both dated and less exceeding traditional servers.
HPE is not the only business in the family fighting – the parent company HP also dismissed about 2,000 workers just a few weeks ago.
The company is also facing non-economic matches-despite EU approval, both Britain and US anti-RUST regulators have expressed concern about HPE’s planned $ 14 billion acquisition of Junipers. If it goes ahead, the Department of Justice claims that the two combined companies would explain “well over” 70% of the market.
