- 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.
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