Hewlett Packard Enterprise Stock Sinks on Firm’s Outlook, Cost-Cutting Measures | Global News Avenue

HP Packard Enterprise (HPE) Stocks fell 15% on Friday, the day after information technology providers provided weak guidance and began cutting costs.

The company expects adjustments in the current quarter Earnings per share (EPS) Analysts surveyed by Visible Alpha are $0.28 to $0.34, $1.70 to $1.90 for the full year, are looking for the current quarter’s adjusted EPS of $0.50 for the full year, and are $2.12 for the full year.

HPE’s adjusted EPS was $0.49 in the first quarter of fiscal 2025, and there was no forecast. Revenue rose 16% year-on-year to $7.85 billion, slightly higher than forecast.

CEO Antonio Neri explained that while the company “has a good track record of consistent, disciplinary executions, “it may be better in some areas of the quarter.”

HPE lays off about 2,500 employees

HPE also announced that it is launching a reduction plan to “reduce structure operating costs and continue to boost its commitment to profitable growth.” It added: “The plan is expected to be implemented in the fiscal year 2026 and by reducing its workforce, a total saving of approximately $350 million by fiscal year 2027.”

“We plan to reduce the employee base by 5% over the next 12 to 18 months by reducing approximately 2,500 positions and expected loss,” Neri said in the revenue call, according to the transcript provided by Aqulase.

Hewlett Packard Enterprise shares have fallen to their lowest level in more than a year.