Hewlett Packard Enterprise is planning to cut 5,000 jobs or 10 percent of its workforce, as part of its HPE Next restructuring initiative.
HPE has already begun notifying executives impacted by the restructuring, with the company announcing this week the new management teams within each of the 11 regions.
HPE is officially not saying anything about the moves. The company has been restructuring for years no and it is surprising that there are still staff to decimate.
The HPE Next initiative is aimed at rearchitecting and simplifying the structure of the company with as much as $200 million to $300 million in cost savings in the current fiscal year. HPE is aiming for $1.5 billion in cost savings over a three-year period.
HPE CEO Meg Whitman told her unfortunate employees that the news of the restructuring was just media reports speculating about employee reductions.
“As you know, we have been aggressively moving forward with our HPE Next program, which is focused on positioning the company for the future. And, I can assure you that our employees are the heart of that strategy. We are looking at a variety of options as we think about the cost structure of the company, and they include both reductions and investments,” Whitman said in the memo.
However, Whitman said it is critical for the company to put “the right resources behind areas that will drive our profitable growth, while rebalancing our cost structure in others”.
Whitman said HPE is committed to “transparency” and will communicate decisions as soon as they are made.
As part of the next restructuring, HPE has already announced that it is flattening its channel organization eliminating layers of management by combining its channels and alliances groups under a single organization headed by Global Channel Chief Denzil Samuels.
The restructuring also includes a new North America management team led by North America Sales Chief Dan Belanger, CRN reported Friday.
Among the top channel executives leaving HPE as a result of the restructuring are Scott Dunsire, an 11-year HPE veteran widely credited with making broad channel improvements and improving co-selling engagement between partners and the HPE direct sales force and Mike Parrottino, a 30-year HPE veteran who was a passionate advocate for partners and the SMB route to market.
Both Dunsire and Parrottino dramatically increased the percentage of sales going through the channel, initiating a mandate to drive 100 percent of SMB sales through partners.
