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Hewlett Packard Enterprise Prepares for More Layoffs

October 18, 2016, 1:56 PM UTC
Hewlett Packard CEO Meg Whitman Rings NYSE Opening Bell
NEW YORK, NY - NOVEMBER 02: Meg Whitman, CEO of Hewlett Packard, gives a television interivew on the floor of the New York Stock Exchange after ringing the opening bell on November 2, 2015 in New York City. Hewlett Packard officially split into two companies, Hewlett-Packard Enterprise, focused on businesses and HP, Inc, focused on consumers. (Photo by Andrew Burton/Getty Images)
Andrew Burton—Getty Images

Last week, it was HP Inc. This week, it’s Hewlett Packard Enterprise that’s laying off more people.

The company, which spun out of Hewlett Packard (HPQ) last year, is laying off personnel, according to social media posts on Twitter and the on Monday. An HPE spokeswoman confirmed to GeekWire—first to report the news—that previously announced job cuts were happening. Fortune reached out to HPE for additional comment.

The news bubbled up the day before HPE (HPE) kicks off its annual security analyst meeting in San Francisco, where chief executive Meg Whitman will lay out her strategy for the company that sells servers, storage, and cloud computing software.

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Reports have been circling that HPE, which has already spun off much of its services business to CSC and software to Micro Focus, may still sell what is left to private equity firms.

Layoffs are nothing new to either of the HP entities or to their predecessor, the iconic 77-year old company that has struggled for traction as more businesses turn to cloud computing for more of their work. That shift has hurt sales of servers, storage, and networking hardware sold for corporate data centers. The same trend has battered competitors from Cisco (CSCO) to IBM (IBM).

Read more: Meg Whitman and HP Five Years Later: Mission Accomplished?

Businesses that used to upgrade their own data center hardware every few years are increasingly using public cloud services from Amazon Web Services (AMZN) or Microsoft Azure (MSFT) to augment or even replace their own data centers.

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Insult to injury, those big cloud providers typically design their own hardware and have it built instead of buying branded gear off the shelf. That’s not good news for the HPEs and Ciscos of the world.

Last week, HP Inc., which sells printers and PCs, announced plans to cut an additional 3,000 to 4,000 jobs over the next three years.