Hewlett Packard Enterprise Co. is planning to let go of roughly 10 percent of its workforce, or around 5,000 employees, as part of a cost-cutting effort that’ll begin before the end of the year.
Sources familiar with the matter tell Bloomberg that increased competition has spurred the change.
HPE didn’t immediately respond to the publication’s request for comment.
The job cuts will reportedly affect those in the US and abroad. Some managerial positions will also be in jeopardy, the sources said. HPE has around 50,000 staffers worldwide.
As the publication highlights, CEO Meg Whitman has been trimming divisions since 2015 as a way to make HPE more responsive to a changing industry courtesy of cloud providers like Amazon and Google. The company completed the sale of its software business to enterprise software vendor Micro Focus for $8.8 billion a couple of weeks ago.
Earlier this month, the executive said on a call with analysts that it is benefiting from growing demand across select areas of the business. She also spoke of her desire to cut “layers” into the company to become simpler, nimbler and faster. CFO Tim Stonesifer said during the same call that HPE expects to realize $1.5 billion in savings over a three-year period.