Amid declining sales due to the COVID-19 crisis, technology giant Hewlett Packard Enterprise plans a major overhaul that will help $1 billion by 2022.
Hewlett Packard Enterprise announced a plan targeting gross savings of at least $1 billion by 2022 and cut the base salaries of top executives by 25% to sail through the COVID-19 crisis.
Hit by global lockdowns since February, the company missed second-quarter revenue and profit estimates. Antonio Neri, the Chief Executive Officer, raised concerns about cautious consumers and supply constraints during a post-earnings call.
Beginning July 1, the base salaries of the CEO and officers at the executive vice president level will be reduced by 25 percent, the company said. The board also agreed to cut by 25 percent the portion of the annual $100,000 cash retainer entitled by directors for the same period.
HPE will now focus to realign its workforce to evolve with its supply chain and real estate strategies, as well as right-size the business.