As part of the efforts to reduce operational costs amidst the fiercer business competitions, Hewlett Packard Enterprise is reported to cut about 10 percent of its workforce. According to the people familiar with the matter, the cuts will affect at least 5,000 workers in the company.
The layoff is said to be carried out before the end of this year, said the source whose identity is kept secret due to the personal nature of the problem. Having about 50,000 workers worldwide, the cuts at the company will most likely affect employees in the US and abroad, including managers.
Chief Executive Officer Meg Whitman has been cutting several divisions within the organisation since 2015, including personal computers, printers, business services and major software units. The move is part of management efforts to make HPE more responsive to industry changes, along with the growing competition from cloud providers such as Amazon.com and Alphabet’s Google.
During a call with analysts on early September, Whitman said the company is gaining profits from increasing demands across key areas of businesses. Meanwhile, she saw the need to cut ‘layers’ within the organisation in order to make more efficient business. With fewer lines of business and clear strategic priorities, she said that HPE have the opportunity to create an internal structure and operating model that is simpler, nimbler, and faster.
On the same call, chief financial officer Tim Stonesifer stated that the company is targeting US$1.5 billion in savings over a three-year period.
In Singapore itself, Hewlett Packard Enterprise has about about 1,600 employees, according to figures presented by Ms Whitman in May last year during the opening of the company’s new Asia Pacific and Japan headquarters building in the city-state, Straits Times reports.
Various departments and facilities are offered for employees in the company’s headquarter in Singapore, which include R&D (research and development), supply chain and logistics, marketing and sales offices, an Innovation Centre as well as a 10,677 square foot Customer Experience Centre.
The company also said that its new headquarter planned to invest some US$140 million over the next five years, with US$16 million of the fund is to nurture prospective local startups in collaboration with the Singapore Economic Development Board.