They're being super quiet about it, but the fact of the matter is that there are more layoffs happening inside this company and it seems mainly due to the merger with Juniper. The surprising thing is that it isn't just traditional overlap functions like marketing or accounting, but actually in functions such as engineering. There is clearly a technology strategy but it is not being shared. Instead, they're just laying off staff to cut costs predominantly in the United States. For those of you that hoped the $1 billion dollars in savings would happen over time and might come out of other things like real estate consolidation, surprise, it's happening very fast and at payroll levels. The hypocrisy inside the company about the well-being and the pride that we have as well as being the best place to work and is ridiculously misplaced.
To make matters worse, HR is pushing forced distribution for end-of-year ratings. They may think they're telling you otherwise, but it's literally what they're doing. When questioned about this, they hide behind senior executives and their wish to do this.
35 replies (most recent on top)
@271 We'll see......
@4gg where did you hear that? I mean, is this your personal opinion or is this based on a clear statement?
@4b6 VP's aren't in Antonio's meetings. SVPs aren't in Antonio's meetings. The only think "actual" in "Actual HPE VP" is being an actually full of sh-t nobody. Probably just MistMan in a new clown suit.
@1t4 Elliott isn't the problem. it is your CFO. She's made it clear to us that she'd cut 50% of HPE if she could.
@4c4 - using AI.
$200M in employee headcount reduction
Using a rough average fully loaded cost of $100k per employee per year (salary + benefits + taxes + overhead)
Math:
$200,000,000 ÷ $100,000 = 2,000 employees
So this implies on the order of ~2,000 roles, not 20,000.
This makes total sense.
So HPE VP, you're telling me 20,000 people will get laid off?!
We are cutting a minimum $200M in employee headcount this fiscal year as a top priority after the Juniper acquisition. This was confirmed last week in Antonio's staff meeting.
At a high watermark average of $100k you do the math.
HPE is making great sacrifices to move forward, unfortunately that sacrifice is you.
Leadership is papering over a cash crunch by burning reserves to fund the Juniper acquisition and continuing to spend more than the business is generating. Yes core revenue is growing but margins are shrinking. They’re effectively buying revenue at a loss and having a hard time converting top line growth into actual profit.
On top of that the balance sheet is stretched and over leveraged while Juniper’s margins are coming in well below expectations. That’s a recipe for a financial storm if execution doesn’t improve.
None of this is accidental, the culture around risk spending and accountability flows from Antonio and his staff down through the organization. Until that changes the financial problems are going to keep surfacing no matter how they’re messaged.
@273 They tried to get AMER to use India but they wouldn't work US hours so Colombia GDC was born... Not as cheap as India but cheaper the US. Can't even hire staff in US anymore, any new position is off-shored.
@xp It has worked at Juniper for years. PS was moved to India years ago for EMEA. Prices went up. Nobody complained.
@da maybe he should have looked more closely at the numbers before buying.
As a C level exec, I am ok.
Think about it. Elliott brought in Calderoni who laid off 1/3 of the workforce at Ariba to achieve profitability, now as a board director at HPE he heads the strategy and integration committees. HPE is going to cost cutting and milking cash cows like a MF'er so Elliott can get a fat return on their 1.5B investment. I'd say with the plethora of sales people running around with low goals and sh---y attainment, there is going to be some bloodletting.
@1h3 Yes, HPE has a storage business made up of companies they've bought over the years.
Don’t let this distract you from the fact that Hector is going to be running three Honda civics with spoon engines, and on top of that, he just went into Harry’s and bought three t66 turbos with nos, and a motec exhaust system.
@1cb HPE has a Storage business?
There are always more layoffs coming at HPE. Its nothing new. Its what HPE is best at. 25 years of rolling layoffs.
More people in Storage business unit in US notified yesterday.
A bloodbath in the US today - Not networking or sales for the teams I am aware of. Security, cloud foundations team, and in India we lost 50% in a couple of our cloud engineering teams. The company is definitely moving to a transformation, and it seems like networking is where it wants to focus. There's a strategy announcement tomorrow so we will see if they are going to tell us wtf they are doing. I am still not convinced I won't be cut, but so far, still alive. I am in security, not that it seems to matter to leadership these days.
Same old hpe. This sort of thing has been going on forever.
Plan to layoff many folks in AS/PS Services and move positions to Mexico, cheap labor with same time zone as well as close enough to fly once and awhile.
Goodbye Columbia and Costa Rica. What is amazing is DJ thinks he can still charge US rates, believing customer won’t know.
@na Yes. Too many sales people, juniper and mist sales people. There are too many and superiors are saying that it is going to be a loss here in APAC as well as USA.
@k1 too many Juniper sales people you mean?
As noted, there is an obvious problem with too many sales people.
HPE is laying off a lot of good people. Leadership issues.
I think it's true. Hearing major legacy Juniper cuts in Sales.
@ey if they’re on PIPs and don’t graduate they can be terminated without a severance… that’s the big difference.
I got WFRed and my account reps that are on PIPs didn’t.
I just saw on LinkedIn a few people in storage were cut yesterday.
Layoffs started last week. I know multiple people in supply chain who got WFR’ed.
This bound to happen..jnpr is temporary cover to divert attention to show growth with some strategy. Acquire a failing networking company to after a giant huh!
Rumor is that Tony extremely unhappy with what he got regarding jnpr sales.
@c7 and me. My team of 9 in the UK has 7 people all wanting to get WFR'd.
This is great news. I hope I'm on the list!