Is HPE’s global overhaul set to see 5000 jobs cut?

Is HPE’s global overhaul set to see 5000 jobs cut?

​New reports suggest that HPE could be getting set to cut around 5,000 jobs from its global workforce

Meg Whitman - CEO, Hewlett Packard Enterprise

Meg Whitman - CEO, Hewlett Packard Enterprise

Hewlett Packard Enterprise (HPE) could be on track to cut around 5,000 jobs from its global operations, according to Bloomberg sources.

If the job cut tally is true, it would represent around 10 per cent of HPE’s global employee footprint.

Bloomberg said that people familiar with the matter suggested the reductions in staff numbers are expected to begin before the year is out, and that the cuts were likely to impact its workers in various international regions, as well as in the United States.

While HPE has, so far, remained tight-lipped on the claims made by Bloomberg, the report comes as HPE works to combine its channels and alliances organisations under the leadership of global chief channel officer, Denzil Samuels.

Indeed, the company is in the process of rearranging much of its global operation. In early September, HPE announced a new global go-to-market (GTM) approach, in terms of its sales teams, along with a new focus on certain regions for future growth.

HPE will embark on a new sales structure for the global teams effective from 1 November 2017.

There will be 11 single country or multi-country groupings, called "geographies" by HPE. These geographies will represent HPE in markets where it has the greatest growth opportunities, according to Davis.

Many of the changes revolve around the so-called HPE Next initiative, which is viewed as a reinvention of the company and aimed at enabling its team members to be more successful and to realise HPE’s full potential.

Broadly speaking, the HPE Next program sees the company optimise both its operating model and the organisational structure to simplify how its people work, including both business processes and operations.

“The guiding principles of HPE Next are customer first, focus and simplicity. And the new structure premised on these principles will bring our resources and decision-making closer to the customer,” Davis said.

In June, HPE promoted its former enterprise group executive vice president, Antonio Neri, to the role of president, in part to oversee the company’s efforts to streamline and optimise its operations following the completion of the spin-mergers of its enterprise services and software divisions, in addition to leading the company’s four primary lines of business.

These efforts - dubbed HPE Next - are focused on driving growth and profitability, and ensuring the company will be well positioned to win in the markets where it competes.  

"HPE Next is a program we kicked off in Q2 following the completion of our enterprise service business spin-off. The goal of the program is to create an organisation that is precisely built to compete and wins in the marketplace," Davis told IDG’s Yogesh Gupta earlier this month.

"We have three guiding principles driving the program. First, the customer is a priority as everything we do has to help benefit them and partners. We need to be focused in terms of the markets and the portfolio we develop. And third, it is all about simplicity.

"We believe by simplifying everything – from business processes to organisational layers – we will become closer to our customers and partners, easier to do business with and better to work for," he said.

HPE had not responded to ARN's queries at the time of writing.

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