HP to cut 9,000 jobs in coming years

Hewlett-Packard will be slashing 9,000 jobs in the coming years.

Hewlett-Packard will be slashing 9,000 jobs in the coming years as it embarks on restructuring initiatives that will entail an investment of USD 1 billion.

The job losses will be on account of the company making huge investments to automate its commercial data centres.

“As a result of productivity gains and automation,HP expects to eliminate roughly 9,000 positions over a multi-year period to reinvest for further growth and to increase shareholder value,” HP said in a statement.

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The company will invest USD 1 billion in the next generation of its Enterprise Services business.

“HP will invest in fully automated,standardised,state-of-the-art commercial data centres built on its Converged Infrastructure and operated by its industry-leading management software,” the statement noted.

To fund the proposed investment,HP will take a charge of about USD 1 billion over a multi-year period.

Once the transformation into automated data centres is complete,the company expects to reap annualised gross savings of nearly USD 1 billion,while net savings after reinvestment are anticipated in the range of USD 500 to 700 million.

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HP will consolidate its Enterprise Services’ commercial data centres and management platforms,among others,to create automated IT infrastructure.

“Over the past 20 months,we focused on integrating EDS and improving profitability,” HP Enterprise Services’s Senior Vice-President and General Manager,Tom Iannotti,said.