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HP Invests in Automation and Cloud; 9000 Jobs Go

By - Source: Tom's Hardware US | B 42 comments

HP has announced an expensive restructuring plan that will see 9,000 people lose their jobs.

The industry is currently investing heavily in cloud computing, and HP is no different. The company today announced that it will cut 9,000 jobs and take a $1 billion restructuring charge as it switches to fully automated data centers, which will handle enterprise services. In a news release earlier today, HP said the decision will allow clients to migrate their applications to these new infrastructure platforms, which in turn will result in faster and more efficiently run businesses.

"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."

However, it won't come cheap. The company went on to say that one consequence of the investment will be the elimination 9,000 positions over the next few years. The company will also take a $1 billion charge, again, over a multiyear period, which will be included in its GAAP financial results.

Despite this, HP says once completed, the transformation is expected to generate annual gross savings of roughly $1 billion and net savings after reinvestment of between $500 million and $700 million.

Read more here.

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  • 16 Hide
    sliem , June 1, 2010 9:26 PM
    Lost jobs, more expensive products.
    Go HP!

    Soon you'll replace all your non-essential employees with robots.
    Go HP!

    Soon robots will replace all your remaining employees.
    Go Cybernet!
  • 15 Hide
    greenscope , June 1, 2010 9:52 PM
    well, it didn't go over 9000 ...
Other Comments
  • 3 Hide
    unrealpinky , June 1, 2010 9:14 PM
    *Sigh* I guess the economic recovery will be a little longer coming. I wish that HP would had taken part of the 2 billion in proposed spending for the next 2 years to re-purpose the people being laid off. That could potentially drive down the estimated costs as well as keep some people from being unemployed. I wish them luck in these tough times.
  • 4 Hide
    Gin Fushicho , June 1, 2010 9:14 PM
    Perfect, jsut what the world needs, more lost jobs.
  • 9 Hide
    ricardok , June 1, 2010 9:19 PM
    Gin FushichoPerfect, jsut what the world needs, more lost jobs.

    And the perfect time to inovate, be different and create your own company.
  • 16 Hide
    sliem , June 1, 2010 9:26 PM
    Lost jobs, more expensive products.
    Go HP!

    Soon you'll replace all your non-essential employees with robots.
    Go HP!

    Soon robots will replace all your remaining employees.
    Go Cybernet!
  • 5 Hide
    Ragnar-Kon , June 1, 2010 9:29 PM
    Smart move on HP's part. Although a bad day for those 9000 employees who will lose their jobs over the next few years.

    Slowly seems like companies are slowly replacing actual people with various pieces of automated technology. Something tells me this is a bad thing...
  • 5 Hide
    jerreece , June 1, 2010 9:41 PM
    According to CNNMoney.com:

    Quote:
    HP will cut about 9,000 jobs in its enterprise services division as a result, but over the same time period, the company expects to add about 6,000 employees to its sales and delivery teams.


    Net Loss: 3,000 jobs.
  • 2 Hide
    Computerrock1 , June 1, 2010 9:47 PM
    The machines are will soon outnumber humans 2:1 at this rate, and when they reach these numbers they will be smart enough to destroy us!!!! No but seriously that is a horrible thing to do to people, especially in the economy...
  • 15 Hide
    greenscope , June 1, 2010 9:52 PM
    well, it didn't go over 9000 ...
  • -2 Hide
    ethanolson , June 1, 2010 10:04 PM
    Well, being a public company pushes HP into pandering to their shareholders instead of ethics.
  • 8 Hide
    Anonymous , June 1, 2010 10:04 PM
    If things keep going like this, soon every factory will be fully automated, hence no jobs, hence no money to the people. How can they expect to sell something to broke people? In our greed of ever greater profits we are making ourselfs obsolete. Where will that lead us?
  • 4 Hide
    CptTripps , June 1, 2010 10:22 PM
    No HP for me.
  • 2 Hide
    tharkis842 , June 1, 2010 11:29 PM
    Sure, this'll save money..for the big-wigs. Too bad 9,000 more people have to lose their jobs to make this happen.
  • 0 Hide
    gwwerner , June 1, 2010 11:47 PM
    MOFO144If things keep going like this, soon every factory will be fully automated, hence no jobs, hence no money to the people. How can they expect to sell something to broke people? In our greed of ever greater profits we are making ourselfs obsolete. Where will that lead us?


    People have been saying this since the industrial revolution and yet before the recession many areas in the U.S. had 2% unemployment. As the stuff we currently buy gets cheaper, we will figure out new things to spend our money on.
  • 2 Hide
    mlopinto2k1 , June 1, 2010 11:55 PM
    Man. This is such a tough topic to positively reflect on. There could be benefits on both sides. The thing is... HP is a HUGE name in the industry. I hope those 9,000 jobs were given AT LEAST a 3 month notice. There should be rules to this game. HP can afford to relieve there positions but they also NEEDED those positions to get to that point. Bastards if they handed people pink slips.
  • 0 Hide
    figgus , June 2, 2010 12:09 AM
    Businesses exist to make money, NOT to issue paychecks. If they can cut costs to make more money, they will. Stop acting as if they have a social obligation to keep paying people they don't need.

  • 2 Hide
    coondawg , June 2, 2010 12:16 AM
    WHAT NINE-THOUSAND!?

    I'm sorry, I'm sorry, I just... I had to do it.
  • -2 Hide
    False_Dmitry_II , June 2, 2010 12:38 AM
    mlopinto2k1Man. This is such a tough topic to positively reflect on. There could be benefits on both sides. The thing is... HP is a HUGE name in the industry. I hope those 9,000 jobs were given AT LEAST a 3 month notice. There should be rules to this game. HP can afford to relieve there positions but they also NEEDED those positions to get to that point. Bastards if they handed people pink slips.


    It's over a period of liek 3 years.
  • 1 Hide
    flachet , June 2, 2010 1:03 AM
    Cloud computing...ha. I know one thing, our company will not have any part of it. Too much data, too sensitive and too much hassle.

    Any company going this route should really, really, really think long and hard on it. Based on what we have seen, a host of cons and absolutely no pros for using a cloud.

    This is going to be one of those things people jump on board with, and regret it with a passion using good old hindsight.
  • 1 Hide
    TeKEffect , June 2, 2010 1:04 AM
    the 1 billion is severance packages so they'll get some money....I'm sure they would rather have a job but at least its something
  • 1 Hide
    brendano257 , June 2, 2010 1:08 AM
    jerreeceAccording to CNNMoney.com:Net Loss: 3,000 jobs.


    The problem is "net loss" means nothing to the 9,000 who lose their jobs. Although 6,000 others may get hired, it doesn't help those 9,000 in these times.

    @Figgus, you can't deny that companies go above and beyond hurting employees in many cases. Although they exist to make money, some things such as the bonuses issued to management and CEO's are downright immoral and unethical. A CEO who receives 10-100 times an average salary as JUST A BONUS shouldn't be able to live with themselves, no matter what 'good' they've done for the company. A better CEO would re-direct this money into R&D or expansion such as more product funding, or cell coverage expansion. The way business is run in America no longer serves anyone but the elite in each company.
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