Hewlett Packard Enterprise Is Said to Plan About 5,000 Job Cuts

Hewlett Packard Enterprise Is Said to Plan About 5,000 Job Cuts
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Hewlett Packard Enterprise is planning to cut about 10 percent of its staff, or at least 5,000 workers, according to Bloomberg, citing people familiar with the matter. It is a part of a broader effort to pare expenses as competition mounts.

The reductions are expected to start before the end of the year, said the people, who asked not to be identified. The cuts at the company, which has about 50,000 workers, are likely to affect workers in the U.S. and abroad, including managers, the people said. HPE representative didn’t immediately respond to requests for comment.

CEO Meg Whitman has been jettisoning divisions since 2015, including personal computers, printers, business services and key software units. 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.

On a call with analysts earlier this month, Whitman said the Palo Alto, California-based company is benefiting from growing demand across key areas of the business. At the same time, she said she’s pushing to cut “layers“ in the organization and become more efficient. On the same call, CFO Tim Stonesifer said the company is targeting $1.5 billion in savings over a three-year period.