Transformation Programs

6 Months Ended

Apr. 30, 2025

Restructuring and Related Activities [Abstract]

Transformation programs are comprised of the Cost Optimization and Prioritization Plan and the HPE Next Plan. The primary elements of both plans were completed by the end of fiscal 2024.

During the third quarter of fiscal 2020, the Company launched the Cost Optimization and Prioritization Plan, which focused on realigning the workforce to areas of growth, a new hybrid workforce model called Edge-to-Office, real estate strategies, and simplifying and evolving the Company’s product portfolio strategy. The transformation (credit) costs predominantly related to labor restructuring, non-labor restructuring, IT investments, design and execution charges and real estate initiatives.

During the third quarter of fiscal 2017, the Company launched the HPE Next Plan to put in place a purpose-built company designed to compete and win in the markets where it participates. Through this program, the Company simplified the operating model, and streamlined its offerings, business processes and business systems to improve its strategy execution.

For the three months ended April 30, 2025, the transformation credit relating to both plans was $13 million. For the six months ended April 30, 2025, the transformation charges relating to both plans was $2 million. For the three and six months ended April 30, 2024, the transformation charges relating to both plans were $34 million and $55 million, respectively.

Restructuring activities related to the Company's employees and infrastructure under the Cost Optimization and Prioritization Plan and HPE Next Plan are presented in the table below:


	Cost Optimization and Prioritization Plan				HPE Next Plan
	Employee Severance		Infrastructure and other		Infrastructure and other
	In millions
Liability as of October 31, 2024	$	67	$	94	$	23
Charges (credits)	—		(10)		(3)
Cash payments	(18)		(10)		(4)
Non-cash items	1		—		—
Liability as of April 30, 2025	$	50	$	74	$	16
Total costs incurred to date, as of April 30, 2025	$	823	$	553	$	268
Total expected costs to be incurred as of April 30, 2025	$	823	$	553	$	268

The current restructuring liability related to the transformation programs, reported in the Condensed Consolidated Balance Sheets as of April 30, 2025 and October 31, 2024, was $38 million and $61 million, respectively, in Accrued restructuring, and $14 million and $17 million, respectively, in Other accrued liabilities. The non-current restructuring liability related to the transformation programs, reported in Other non-current liabilities in the Condensed Consolidated Balance Sheets as of April 30, 2025 and October 31, 2024, was $88 million and $106 million, respectively.