Technology giant Hewlett Packard Enterprise has said it would be laying off 2,500 employees globally as part of a cost-saving programme. To slash 5 percent of the workforce, the company has expected to save $350 million by fiscal 2027. Reuters reported that HPE had nearly 61,000 employees as of 31 October.
Besides, HP forecasts quarterly revenue growth below Wall Street’s estimates for the March quarter.
The company’s projected revenue is between $7.2 billion and $7.6 billion for the second quarter while analysts expected $7.93 billion.
The company blamed the US tariff war, affecting its server business.
During the post-earning call, HP CEO Antonio Neri expected to adjust the prices of its product and leverage its global supply chain to mitigate the impact, if any, of the tariff.
On Thursday, US President Donald Trump exempted some goods from both Canada and Mexico from the North American trade pact until April 2, from the 25 percent tariffs that he had imposed earlier this week.
Sales outside the US market contributed 64 percent to HPE’s net revenue in fiscal 2024. The production and final assembly of its product and in China, Mexico, and other locations.
HPE posted a revenue of $7.85 billion in the first quarter ended on 31 January. Its server revenue grew 29 percent to $4.3 billion.