HP Enterprise to cut 5000 jobs, Bloomberg says

Hewlett Packard Enterprise 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. 

“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.

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.

“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.

Ealier this month, HPE announced it had completed the sale of its software business.

After reporting strong third quarter financial results, CEO Meg Whitman said on a conference call this month that HPE is becoming "a smaller organization with fewer lines of business and clear strategic priorities." She added, "We have the opportunity to create an internal structure and operating model that is simpler, nimbler and faster."

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