Nearly 900 UK-based personnel at Hewlett Packard Enterprise are to be released into the wilds at the end of this month, according to the redundancy schedule seen by The Register.
The majority of those made to walk the plank come from Enterprise Services, which is the area that has been hit hardest in HPE’s continuous cost-cutting efforts that started in 2012.
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According to documents created by the UK Works Council, made up by reps from the workforce and unions, 894 HPErs out of a total of 10,825 in the country will head out of the exit door on 31 July.
A breakdown of the areas included 658 heads from IT Outsourcing - which is higher than originally planned - 147 from Application Business Services, and 12 in Business Process Services. The remainder is comprised of smaller layoffs elsewhere in services and across the Enterprise Group and Global Functions.
As revealed by us, some 1,092 people left HPE in Q2 of its fiscal ’16.
The reasons listed for the latest redundancies include a lower demand for products and services, transfer of work to another site or employer and changes in work methods or organisation.
The good news for ITO bods is this quarter’s actions could be the last of the cost hacking, by HPE anyway.
“ITO stated during their their presentation that they are currently trying to assert that workforce management activity is complete by the end of [HPE’s] Q3 [of fiscal ’16 ended August].”
“If that assertion is accepted then there will be nothing to do in Q4 other than some housekeeping, if it is not accepted then there will be further consolidation in Q4 (August to October),” the document stated.
HPE is consolidating service delivery centres in the UK to two, Newcastle and Erskine, and is sending work to offshore locations including India.
The lower cost structure helped HPE stem the losses in Enterprise Services but the top line is still declining - customers aren't dishing out those mega outsourcing contracts at nearly the same rate.
The next major phase for HPE’s Enterprise Services will be to merge with CSC to create an even bigger basket case - further cost savings have already been identified. ®