​New round of HPE software layoffs begins

HPE has quietly begun to lay off yet more programmers and software engineers.
Written by Steven Vaughan-Nichols, Senior Contributing Editor
HP splits up with itself, and thousands of its own workers

As HPE gets ready to spin off some of its software offering to Micro Focus, it's laying off more employees. (Image: file photo)

SANTA FE, NM -- Linux Plumbers, the invite-only conference for core Linux developers, is usually a happy occasion, but not this time.

Several top programmers came looking for work because they had just been laid off by Hewlett Packard Enterprise (HPE). And they weren't the only ones. Last week, HPE laid off numerous OpenStack cloud developers.

Even now, the layoffs keep coming.

According to reports, the operations orchestration R&D group was fired in Israel, with numerous other spot reports of redundancies.

HPE confirmed the layoffs to ZDNet.

An HPE representative said, "These changes are part of a company-wide strategy to give HPE the needed workforce to be a more nimble customer and partner-centric company." The spokesperson gave no further information on how many people would be laid off or how long the process might take.

All these moves seem to be in conjunction with HPE's spin-off/merger of its non-core software assets with Micro Focus.

In mid-October at HPE's securities analyst meeting, General Manager Chris Hsu showed which way the wind was blowing. In remarks, he said: "We are implementing a new product segmentation strategy that will ensure we are putting the right resources behind the highest value opportunities while continuing to invest in the mission-critical applications that our customers rely on."

"As we go through this process we're focused more than ever on delivering on our financial commitments and making sure that we set up our software business for a smooth integration with Micro Focus," he added.

HPE Chief Financial Officer Tim Stonesifer said that the company will "continue to execute the operational improvements".

Reading between the lines, this generally means layoffs.

How many more isn't known. Stonesifer added that 2017 will be "a year of transition". He said that the Micro Focus deal should close toward the middle of the year.

If I were an HPE developer, I'd be looking for another job.

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