07:02 AM EST, 03/07/2025 (MT Newswires) -- Hewlett Packard Enterprise ( HPE ) shares fell nearly 20% in premarket activity Friday, a day after it shared plans to achieve roughly $350 million in run-rate cost savings by fiscal year 2027 through workforce reductions.

Hewlett Packard Enterprise ( HPE ) plans to reduce workforce by 5%, or about 2,500 employees, over the next 12 to 18 months, the company said during the quarterly earnings call Thursday.

The company estimates cash charge of about $250 million in 2025 and about $100 million in 2026 to implement this cost reduction plan and achieve the target run-rate savings in 2027.

Hewlett Packard Enterprise ( HPE ) also issued fiscal Q2 profit guidance that trailed analysts' projections, citing industry-wide "uncertainty" from the current US tariff policy. It expects fiscal Q2 adjusted earnings of $0.28 to $0.34 per share, compared with estimates polled by FactSet for $0.38.