Hewlett Packard Enterprise Co. (HPE) experienced a significant drop in its stock price, falling approximately 15%, following the release of its annual profit outlook, which missed investor expectations. The company also announced plans to eliminate around 3,000 jobs. HPE projected earnings, excluding certain items, to be between $1.70 and $1.90 per share for the fiscal year ending October 2025, significantly lower than the average analyst estimate of $2.12 per share. Sales for the current quarter ending in April are expected to range from $7.2 billion to $7.6 billion, compared to the average projection of $7.94 billion. The reduced profitability is primarily attributed to challenges in HPE’s server unit, including discounting during sales, higher-than-expected costs, and an accumulation of older-generation semiconductors. Additionally, tariffs are expected to impact profitability. As part of its strategy to address these issues, HPE plans to reduce its workforce by about 3,000 positions, with 2,500 through job cuts and the remainder through attrition. This reduction is expected to cost the company approximately $350 million over the next two years but is projected to result in annual savings of the same amount by fiscal 2027. Despite the challenges, HPE remains committed to its $14 billion acquisition of Juniper Networks Inc., despite a lawsuit by the US Justice Department aiming to block the deal on antitrust grounds.