HPE announced on Thursday that it is to cut its employee base by 5% over the next 12 months by eliminating around 2,500 positions and expected attrition.
But it is not the only vendor to have trimmed headcount in 2025 as the tech jobs squeeze continues into another year.
According to independent layoffs tracker Layoffs.fyi, around 152,000 tech employees were laid off in 2024, compared with 264,000 in 2023 and 165,000 in 2022.
2025 is shaping up to be another year of mass casualties as vendors continue to shed staff, citing the need to cut their cloth according to the new business reality, the rise of AI, or shifting go-to-market priorities.
Vendor job cuts are a double-edged sword for the channel, who in some cases may well be asked to pick up the slack (see here as an example).
Here we recap on six vendors that have announced deep cuts already this year.
HPE
Roles affected: 5% of workforce/2,500 positions
When announced: 6 March
Rationale
HPE CEO Antonio Neri said the headcount reductions will “strengthen our financial profile” and “better align our cost structure to our business mid and long-term strategy”. The announcement came as HPE’s shares slumped by a fifth on the back of Q1 results that missed expectations.
“These are not easy decisions to make as they directly affect the life of our team members. We will treat all those transitions with the highest level of care and compassion,” Neri said.
HP
When announced: 27 February
Roles affected: Up to 2,000 positions
Rationale
At the end of February, HP said it intends to make “incremental gross workforce reductions” of between 1,000 and 2,000 employees as part of its ongoing restructuring efforts throughout its fiscal 2025.
HP said it expects to generate savings of around $0.3bn in fiscal 2025 through the move.
It was announced as HP’s shares dipped on Q1 results showing a weaker-than-anticipated outlook.
Autodesk
When announced: 27 February
Roles affected: 9% of workforce/1,350 employees
Rationale
A 9% workforce reduction at Autodesk will help it reshape its go-to-market organisation, accelerate investments in AI and strengthen its business resilience, CEO Andrew Anagnost said in a letter to employees.
“This decision was made after careful consideration, and I sincerely regret the impact on those who may be affected,” Anagnost said.
Skybox Security
When announced: 24 February
Roles affected: 100% of workforce/300 employees
Rationale
Skybox Security laid off its entire 300-strong workforce in February as it ceased operations.
The security policy and vulnerability management vendor raised $50m in funding as recently as 2023, bringing its total raised to $335m. But it was forced to shut up shop after “ongoing financial challenges”, according to its website.
Skybox’s business and technology were acquired by fellow Israeli cybersecurity company Tufin on the same day.
Sophos
When announced: 13 February
Roles affected: 6% of workforce/300 employees
Rationale
Sophos swung the axe in February after completing its blockbuster acquisition of managed detection and response provider Secureworks.
Although the deal was welcomed by partners, according to the Register, Sophos confirmed it is eliminating 6% of its workforce as it targets roles that are no longer needed now that Secureworks is no longer a public company, as well as duplicate roles.
That would equate to around 300 roles (based on the assumption that Sophos has 4,500-5,000 staff), the Register said.
Workday
When announced: 5 February
Roles affected: 8.5% of workforce/1,750employees
Rationale
The increasing demand for AI has “the potential to drive a new era of growth for Workday”, CEO Carl Eschenbach said as he announced the “difficult, but necessary” decision to eliminate 8.5% of the HR and finance software vendor’s workforce.
“This creates a massive opportunity for us, but we need to make some changes to better align our resources with our customers’ evolving needs,” he said.
Doug Woodburn is editor of IT Channel Oxygen
