Spring-based Hewlett Packard Enterprise has revealed it is set to lay off an estimated 2,500 workers following disappointing economic performance. The company—which employs about 2,000 people in the Houston area— announced it would reduce operating costs by cutting about 5 percent of its workforce through layoffs and attrition over the next 18 months.

StockNews.com cut shares of Hewlett Packard Enterprise (NYSE:HPE – Free Report) from a buy rating to a hold rating in a report released on Friday morning. Other equities research analysts also recently issued research reports about the stock.

Shares of Hewlett Packard Enterprise fell 13% on Friday, after the AI-server maker said its annual profit forecast would be hit by U.S. tariffs in an intensely competitive market.