HPE set to cut thousands of employees despite results rise

Image credit: Hewlett Packard Enterprise (Image credit: Hewlett Packard Enterprise)

2,500 HPE workers will lose their jobs by redundancy, another 500 by attrition
Next-quarter revenue could be as low as $7.2 billion, $0.7 billion down
HPE’s Juniper acquisition is causing another headache for the firm

Hewlett Packard Enterprise (HPE) has revealed it is set to lay off an estimated 2,500 workers following disappointing economic performance.

CEO Antonio Neri confirmed an estimated 3,000 workers could leave the company, with the remaining 500 coming in the form of attrition (via Bloomberg).

The news followed a 19% dip in extended trading shares yesterday after the company issued weak guidance in its earnings call.

HPE set to axe 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 by 2027.

"We are pleased that we met our revenue guidance estimate as we navigated the quarter,” HPE CFO Marie Myers said, noting the company generated $7.9 billion in its most recent three-month period, ending January 31 2025.

“We took actions in the quarter to streamline costs, which helped us offset other impacts to profitability. We continue to align our strategy and execution with long-term growth trends that will fuel our performance,” Myers added.

HPE says it anticipates revenue of $7.2 billion to $7.6 billion in the next quarter – even the higher figure would mark a drop.

Although AI-driven demand has surged, costly AI components have led to lower-than-ideal margins. HPE also ended up with excess inventory when Nvidia transitions to Blackwell GPUs, adding unnecessarily to the cost with heavy discounts for both dated and less headline-grabbing traditional servers.

HPE isn’t the only business in the family struggling – parent company HP also laid off around 2,000 workers just a few weeks ago.

The company is also facing non-financial struggles – despite EU approval, both UK and US antitrust regulators have expressed concern over HPE’s planned $14 billion acquisition of Juniper. If it goes ahead, the Department of Justice alleges the two combined companies would account for “well over” 70% of the market.

An HPE spokesperson shared with us the company's official statement: "As part of our Q1 FY25 earnings, we announced cost savings measures the company will undertake to further strengthen our financial profile by better aligning our cost structure to our business mix and long-term strategy.

"We plan to reduce our employee base by roughly 5 percent over the next 12 to 18 months through the reduction of approximately 2,500 positions and expected attrition. These are not easy decisions to make, and we will treat all transitions with compassion."

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!