Palo Alto, March 7: HPE (Hewlett Packard Enterprise) will reportedly lay off 2,500 employees in its upcoming round of job cuts. The company aims to reduce costs amid poor stock market performance. HPE's stock declined 19% on Thursday due to investors' dissatisfaction with its future outlook. HPE CEO Antonio Neri, during a conference call, said that the company would have executed better addressing the company's issues with sever margin and despite taking aggressive actions, seeing positive effects.   

According to a report by CNBC, HPE revenue increased 16% over the year during the quarter ending January 31, 2025. The report mentioned that the tech giant was left with a USD 598 million profit or 44% per share. Last year, during the same quarter, the company had a profit of USD 387 million, or 29% per share. The numbers showed that the company had achieved good results but could have done better. DHL Layoffs: German Logistics Giant To Cut 8,000 Jobs Amid Profit Decline, Aims To Save 1 Billion Euros by 2027.

The tech company said that it would implement a cost-cutting programme through implementing HPE layoffs over a period of 18 months. The decision to cut jobs aimed to save USD 350 million in gross revenue by 2027. According to a report, an HPE spokesperson said that the 5% workforce of the company would be impacted by the latest round of job cuts and around 2,500 employees would be affected. As per its annual report, Hewlett Packard Enterprise employed 61,000 employees by the end of October.  

Hewlett Packard Enterprise provides data manufacturing equipment, such as servers, that help manage large amounts of data. The company also offers cloud services and data transformation into meaningful information. The report said that the company had more AI servers due to the shift to the next-gen NVIDIA Blackwell GPUs. JioStar Layoffs: India’s Largest Media Conglomerate To Lay Off 1,100 Employees After Merger, Multiple Departments To Be Affected, Says Report.

The report mentioned that HPE finance chief Marie Myres said that the AI system's backlog was 29% higher quarter-over-quarter, and total server revenue was USD 4.29 billion. The company faced 'extensive discounting' in the market when it sold its traditional servers in the quarter. Following this, the tech giant controlled its travel and discretionary spending. Marie Myres added that Hewlett Packard Enterprise expected pricing adjustments negatively impacting "top-line growth" in the near term.

(The above story first appeared on LatestLY on Mar 07, 2025 02:12 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).