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.

Hewlett Packard Enterprise ( HPE -15.84%) stock collapsed in a 15.2% rout (through 9:50 a.m. ET) this morning after reporting mixed earnings last night, and forecasting a significantly worse 2025 than most Wall Street analysts had been expecting.

The technology company in recent years relocated its corporate headquarters from Silicon Valley to the Houston area.

Hewlett Packard is the latest Bay Area tech company to announce job cuts. On Thursday, the tech giant announced it would be cutting 2,000 jobs as part of an amendment to a current restructuring plan.

The Spring-based tech company announced Thursday that it is looking to cut costs as its outlook for the year dims.