Spring-based Hewlett Packard Enterprise has revealed it is set to lay off an estimated 2,500 workers following disappointing economic performance.

Hewlett Packard Enterprise ( HPE -15.84%) stock collapsed in a 15.2% rout (through 9:50 a.m. ET) this morning after reporting mixed earnings last night, and forecasting a significantly worse 2025 than most Wall Street analysts had been expecting.

The stock's rise snapped a three-day losing streak.

HPE plans to cut about 2,500 employees over the next 18 months to reduce costs, despite a revenue increase of 16.9% in the recent quarter. The exact impact on Houston staff is unspecified.

The technology company in recent years relocated its corporate headquarters from Silicon Valley to the Houston area.

Key Takeaways Hewlett Packard Enterprise gave profit guidance below estimates.The IT firm also missed quarterly profit estimates, with CEO Antonio Neri noting "we could have executed better."Hewlett Packard Enterprise also announced a cost-cutting plan that includes reducing staff by about 5%.

Hewlett Packard Enterprise said on Thursday it would lay off 5% of its workforce, or over 2,500 employees globally, as part of a cost-saving program and forecast its second-quarter revenue below Wall Street estimates,

The Spring-based tech company announced Thursday that it is looking to cut costs as its outlook for the year dims.

StockNews.com cut shares of Hewlett Packard Enterprise (NYSE:HPE – Free Report) from a buy rating to a hold rating in a report released on Friday morning. Other equities research analysts also recently issued research reports about the stock.

The stock of Hewlett Packard Enterprise (HPE) is down 17% after the information technology (IT) company reported mixed financials results and