HP Invests in Automation and Cloud; 9000 Jobs Go

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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    Top Comments
  • sliem
    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!
    16
  • greenscope
    well, it didn't go over 9000 ...
    15
  • Other Comments
  • unrealpinky
    *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.
    3
  • Gin Fushicho
    Perfect, jsut what the world needs, more lost jobs.
    4
  • ricardok
    Gin FushichoPerfect, jsut what the world needs, more lost jobs.

    And the perfect time to inovate, be different and create your own company.
    9