Your servers for AI are not profitable enough

HP’s split business division, Hewlett Packard Enterprise, has published its Financial results From the first quarter of the year and the conclusions confirm that it is not going through its best financial moment, which forces the technological to apply a cost adjustment plan to compensate for the fall in income.

This translates into the dismissal of up to 5% of global employees, of an estimated staff in more than 61,000 workers, according to the company in its Last annual report.

Not enough money enters. Hewlett Pckard Enterprise (HPE) registered sales of sales of 7,854 million dollars in its first fiscal quarter of 2025, exceeding expectations that project 7,810 million dollars. This represents a growth of 16% year -on -year in total quarterly sales, which represents a net profit of 538 million dollars.

However, growth forecasts have not been expected and forecasts point to the need to activate a shock plan to reduce structural costs, given the expectation that the benefits fall even more in the second quarter of the year.

2,500 less employees. One of the first decisions announced by the company has been the application of a reduction of personnel that would affect some 2,500 employees around the world. The measure is part of the adjustment plan that the technology plans to apply from now until the fiscal year of 2026.

The objective of the adjustment plan on its workforce is to save 350 million dollars until 2027, according to confirmed A spokesman a CNBC. The company has not yet pronounced on which departments and countries will be affected by the dismissals of personnel.

The servers are not sold. Part of the responsibility in the company’s loss of revenue falls on the server market. According to published ExpansionAntonio Neri, CEO of HPE, attributed these forecasts downward to the difficulties facing their server segment.

“The problems in the unit of servers that caused lower profits were present both in traditional teams and in artificial intelligence,” confirmed to Bloomberg Antonio Neri, CEO of HPE.

The AI ​​leaves little margin. The rise of The demand has fired of powerful servers, but its little margin of benefits makes it a complicated segment, which is aggravated by the increase in the cost of the chips for Nvidia.

According to Hewlett Packard Enterprise CEO, among the main challenges for the next quarter is the increase in operating costs, the accumulation of inventory, the need to offer discounts to boost servers sales.

During the first fiscal quarter, the HPE AI systems They registered revenues of 900 million dollars, well below the 1.5 billion dollars signed by the previous quarter.

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Image | Wikimedia Commons (Tony Webster)