Hewlett Packard Enterprise (HPE) will cut 2,500 jobs over the next 18 months, aiming for $350 million in cost savings by 2027. The decision follows a 19% stock drop after the company issued weaker-than-expected financial guidance.
Key financials for Q1:
- Revenue: $7.85B (vs. $7.82B expected)
- Earnings per share: 49 cents (in line with expectations)
- AI backlog: Grew 29% to $3.1B
Despite 16% revenue growth, HPE faced discounting pressure on traditional servers, high AI inventory, and upcoming U.S. tariffs. The company is also navigating regulatory hurdles in its planned $14B acquisition of Juniper Networks, with a trial expected in July 2025.
Related News