HP Invests in Automation and Cloud; 9000 Jobs Go
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.

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!
And the perfect time to inovate, be different and create your own company.
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!
Slowly seems like companies are slowly replacing actual people with various pieces of automated technology. Something tells me this is a bad thing...
Net Loss: 3,000 jobs.
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.
I'm sorry, I'm sorry, I just... I had to do it.
It's over a period of liek 3 years.
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.
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.