The layoffs will begin this year, and affect workers including managers in the U.S. and overseas according to the report, which cites people who asked not to be identified.
On its earnings call earlier this month, CEO Meg Whitman hinted that despite better-than-expected revenue reports, there might be more belt-tightening to come.
“We are reducing the layers in our customer-facing organizations and shifting resources to the geographic markets that will drive the vast majority of our business,” Whitman said, according to a Seeking Alpha transcript of the call. “Now, as a smaller organization with fewer lines of business and clear strategic priorities, we have the opportunity to create an internal structure and operating model that is simpler, nimbler, and faster.”
Also on the call, CFO Tim Stonesifer said HPE is “committed to $1.5 billion of gross savings over the next three years.” This includes $200 million to $300 million in savings over the second half of 2017.
Earlier this month HPE completed an $8.8 billion deal with Micro Focus to spin off its non-core software business. The company also spun off its Enterprise Services in a similar deal that merged it with CSC. Other slimming-down moves include the sale of TippingPoint and a deal that merged some of HPE’s China-based businesses with Tsinghua Holdings to form the new H3C.