Sept. 22 (UPI) -- Hewlett Packard Enterprise will soon shrink its workforce about 10 percent by laying off 5,000 employees, sources familiar with the decision said.
Staff cuts at the information technology company, spun off in 2015 from Hewlett-Packard, are expected to begin by the end of the year, Bloomberg News reported on Friday. The decision will affect managers, as well as U.S. and foreign staff.
The move by the Palo Alto, Calif., company is part of a three-year Hewlett Packard Enterprise plan to eliminate about $1.5 billion in costs and shift resources toward research and development, the Wall Street Journal reported on Friday.
Bloomberg added that the moves are an attempt to make Hewlett Packard Enterprise more responsive to a changing marketplace under pressure from cloud-computing providers, including Amazon and Google.
Earlier in September, Hewlett Packard Enterprise CEO Meg Whitman told a conference call of analysts that she advocated cutting layers of management in the company to become more efficient.