HPE, IBM to cut jobs, reduce salaries due to coronavirus

HP Envy 17
HP Envy 17 (Image credit: HP)

What you need to know

  • HPE and IBM reportedly issued salary and job cuts due to the current global health crisis.
  • IBM will provide subsidized medical coverage to people affected through June 2021.
  • All HPE personnel are affected by salary cuts except front-line sales workers.

IBM (International Business Machines) and HPE (Hewlett Packard Enterprise) issued salary reductions and job cuts to several people today as a result of the current global health crisis. Exact figures on the layoffs aren't known at this time, but several outlets report the job and salary cuts. The Register reports that all HPE salaries will be reduced except for front-line sales workers. While IBM has not confirmed job cuts, the Wall Street Journal and Fox Business reported the IBM layoffs. The cuts and reductions are a result of poor performance by the companies over the last few months, likely tied to the COVID-19 pandemic.

Despite not confirming the layoffs, an IBM spokesperson shared with CRN that people who lost their jobs due to the health crisis will receive medical coverage through June 2021, stating, "Recognizing the unique and difficult situation this business decision may create for some of our employees, IBM is offering subsidized medical coverage to all affected U.S. employees through June 2021."

HPE's CEO, Antonio Neri states that the health crisis affected the company, "The global economic lockdowns since February significantly impacted our fiscal Q2 financial performance." Neri adds that HPE is "Taking decisive steps to navigate the near-term uncertainty, while ensuring we align resources to prioritize growth areas so that we are well positioned to accelerate our edge-to-cloud strategy and address the needs of our customers in a post-COVID-19 world."

According to The Register, HPE's cost cutting measures include cutting jobs, pausing promotions and raises, limiting hiring, and reducing salaries across the company. The Register reports that all staff are affected except front-line sales workers. The goal of the cuts is to save at least $1 billion.

Several companies have had to make cuts and layoffs due to the health crisis. With the crisis extending to several months, IBM and HPE joined the list of companies to reduce expenses during the pandemic.

Sean Endicott
News Writer and apps editor

Sean Endicott brings nearly a decade of experience covering Microsoft and Windows news to Windows Central. He joined our team in 2017 as an app reviewer and now heads up our day-to-day news coverage. If you have a news tip or an app to review, hit him up at sean.endicott@futurenet.com (opens in new tab).

3 Comments
  • A little surprising considering there's so many HP Desktops out there for business. Curious to know if sales of Microsoft Surface have increased since the start of the pandemic.
  • Seems to be a common trend these days using the Coronavirus as an excuse to get rid of staff and some advertizing for new staff at a much lower wage.
  • What is the problem exactly? Can't they reboot the data centers remotely