HP to cut 9,000 jobs in $1bn plan to grow services business

HP is investing $1bn in technology for its services business...

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HP is investing $1bn in technology for its services business as its focus moves away from integrating EDS to growth.

However, 9,000 workers will lose their jobs as a result of the plan.

HP said it will use its own converged infrastructure technologies to build fully automated and standardised commercial datacentres.

It will enable its customers to migrate to the same technology platforms as it will use.

"Over the past 20 months, we focused on integrating EDS and improving profitability," said Tom Iannotti, senior vice-president and general manager, HP Enterprise Services. "Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business. These next-generation services will enable our clients to benefit from the combined technology and services leadership that only HP offers."

HP is consolidating Enterprise Services' commercial datacentres, management platforms, networks, tools and applications.

"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," said HP.



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