Hewlett Packard Enterprise, a Fortune 500 technology company based just north of Houston, is projected to lay off 2,500 employees.
Antonio Neri, chief executive officer of the Spring-based company, made the announcement during an earnings call presentation last week. He said the cuts are part of a greater cost reduction plan aimed at reducing expenses by $350 million by 2027.
“Looking ahead, we see additional opportunities to take incremental corporate cost actions to further strengthen our financial profile,” Neri said. “We plan to reduce our employee base 5 percent over the next 12 to 18 months through the reduction of approximately 2,500 positions and expected attrition.”
Hewlett Packard employs more than 60,000 employees worldwide, including around 2,000 in the Houston area. It wasn’t immediately clear on Monday how the major workforce reduction would affect Houston-based employees.
“Doing so will better align our cost structure to our business mix and long-term strategy,” Neri said. “These are not easy decisions to make as they directly affect the life of our team members. We will treat all those transitions with the highest level of care and compassion.”
Hewlett Packard’s stock shares dipped 19% in extended trading last week, but the company’s revenue overall rose 17% from the prior year, coming in at $7.85 billion in the quarter ending Jan. 31. The company projects revenue growth of 7-11% in constant currency in fiscal year 2025, according to a recent news release.
Marie Myers, chief financial officer for the company, said in the earnings call presentation that a 17% revenue growth from the last year marks the fourth consecutive quarter of accelerated revenue growth.
“We met our outlook, achieving double-digit growth in server and hybrid cloud,” Myers said. “Intelligent Edge also performed better than we expected and is set to grow further in this quarter.”
RELATED: Hewlett Packard Enterprise to move headquarters from Silicon Valley to Houston area
The company in 2020 announced it would relocate its corporate headquarters to the Houston area. The move was praised at the time by leaders of the Greater Houston Partnership, a local economic development organization, and Texas Gov. Greg Abbott.
Copyright 2025 Houston Public Media News 88.7