Hewlett Packard Enterprise announced a cost-cutting program involving 2,500 layoffs (5% of its ~61,000 workforce) over the next 18 months. The cuts aim to achieve $350M in gross savings by fiscal 2027. HPE's server business faces margin pressures from U.S. tariffs on Mexico and Canada, adding ~$120M to operational expenses, while rising competition has forced the company to lower prices. HPE intends to redirect savings toward expanding capabilities in AI, cloud computing, and high-performance computing.