There are some simple financial and market forces at play here.
Firstly, when a company stagnates the size of HPE hits the skid pan where revenue flatlines, margins are on a downward spiral and there is no line of sight to become the low cost producer, significantly differentiated or a niche player there is only one thing left you can attack - the cost base.
HPEs costs will be dominated by headcount, R&D and channel programmes/development. Axing R&D or channel dev would be perceived as company suicide - and the analysts who provide insight to major stock investors would start marking the stocks future potential heavily down, the share price free falls and rightly so top management will be ousted as hostile takeovers start to be mooted,
So back to cost - if that’s your only lever to improved profitability and desperately needed competitiveness - you cut heads, take the one time restructuring cost and sweat the hell out of your remaining assets and do all you can to make your channel stronger will great new products that will sell like hot cakes, beautifully funded by smaart R&D.
HPE is at a tipping point - and fighting for its very survival as we rightsize for the nth time. Drastic times require more drastic, riskier actions. So will there be a huge downsize through WFR?- there are no other options on the table. The numbers don't lie.
Employees who are expensive to keep (long tenure, high salaries/benefits, or those who are cheap to dispose of (low tenure) coupled with those in jobs in the field that have little if any accountability for what is important TODAY are the top targets for departure.
The HPE Next (WFR) initiative is being run by Faust in finance and their excel spreadsheets. There will be blood spilt - and a lot of it. Whitman will be supporting this fully to drive it through as her reputation is on the line and she will jump while she can still claim she inherited a disaster and left with the restructuring well advanced. Hence disposing of BIG chunks of stock. Cash uot before you crash out.
If she doesn’t do this the chance of a new, major league CEO position in Corporate America and her political ambitions, are toast.