Hewlett Packard Enterprise (HPE) shares plummeted 20% in after-hours trading on Thursday, following disappointing earnings results. The server and software company reported stronger-than-expected revenue but saw its outlook clouded by news of planned layoffs and the potential negative impact of tariffs.
As part of a cost-cutting program, HPE plans to reduce its overall headcount by about 5% over the next 12 to 18 months, resulting in approximately 2,500 job cuts. This will lead to charges affecting both its second-quarter earnings and full-year 2025 guidance, which falls short of Wall Street’s expectations.
The company’s guidance was pulled down due to the layoffs and tariffs, leading to a significant decline in HPE’s stock price. Investors are taking notice, with HPE’s shares falling by 20% in after-hours trading on Thursday.
Source: https://www.marketwatch.com/story/hpes-stock-is-sliding-after-earnings-these-factors-are-affecting-its-outlook-7a1bf2d6