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HEWLETT PACKARD ENTERPRISE CO filed this 8-K on 05/21/20

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HEWLETT PACKARD ENTERPRISE CO - 8-K - 20200521 - SECTION_2_FINANCIAL_INFORMATION


Item 2.02			Results of Operations and Financial Condition.

The information contained in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

On May 21, 2020, Hewlett Packard Enterprise Company (“HPE”) issued a press release relating to segment results for its fiscal quarter ended April 30, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.


Item 2.05			Costs Associated with Exit or Disposal Activities.

On May 19, 2020, the Board of Directors of HPE (the "Board") approved a cost optimization and prioritization plan (the “plan”) in order to focus HPE’s investments and realign the workforce to areas of growth and measures to simplify and evolve its product portfolio strategy, go-to-market configurations, supply chain structures, digital customer support model and marketing experiences, and real estate strategies. HPE expects that the plan will be implemented through fiscal 2022 and estimates it will include gross savings as a result of changes to the company’s workforce, real estate model and business process improvements of at least $1 billion, with the plan expected to deliver annualized net run-rate savings of at least $800 million by FY22-end, in both cases relative to HPE’s fiscal year 2019 exit.

In order to achieve this level of cost savings, HPE estimates cash funding payments between $1 billion to $1.3 billion over the next three years.