Hewlett Packard Enterprise to Cut 2,500 Jobs Following Weak Earnings and Tariff Pressures

The company also lowered its revenue and profit forecasts for 2025, citing challenges from U.S. tariffs and competitive market dynamics.

Hewlett Packard Enterprise (HPE) announced plans to reduce its workforce by 2,500 employees, or 5% of its global staff, over the next 18 months through layoffs and attrition.
HPE reported first-quarter revenue of $7.85 billion, a 16% year-over-year increase, but its gross profit margin fell to 29.4% due to higher costs and inventory challenges in its server business.
The company lowered its guidance for the second quarter, forecasting revenue between $7.2 billion and $7.6 billion, below analysts' expectations of $7.93 billion.
HPE attributed its weaker outlook to the impact of newly imposed U.S. tariffs on imports from China, Mexico, and Canada, as well as competitive pressures in the AI server market.
The company is also facing a U.S. Department of Justice lawsuit challenging its $14 billion acquisition of Juniper Networks, with a trial set for July 2025.