HP to axe 9,000 jobs at $1b cost

Nicole McCormick | June 02, 2010

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Computer giant Hewlett Packard will cut 9,000 jobs over the next few years as part of its $1 billion restructure of its enterprise services business.

HP said it plans to invest $1 billion in its next generation Enterprise Services business, including building fully automated data centers.

As a result of this automation, HP expects to axe “roughly 9,000 positions over a multiyear period” and in the process “take a charge of approximately $1 billion.”

Most of the job losses are expected in operations HP acquired as part of its $13.9 million acquisition of tech services giant EDS in 2008, said Mercury News.

At the same time, HP reportedly plans to add 6,000 new staff to its global sales and services operations.

Once completed, HP said the transformation is expected to generate “annualized gross savings of approximately $1 billion” and net savings after reinvestment “in a range between $500 million and $700 million.”

"Over the past 20 months, we focused on integrating EDS and improving profitability," stated Tom Iannotti, senior vice president and general manager of HP's enterprise services unit.

"Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business," he added.

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Nicole McCormick