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.

  • 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.
  • Gin Fushicho
    Perfect, jsut what the world needs, more lost jobs.
  • ricardok
    Gin FushichoPerfect, jsut what the world needs, more lost jobs.And the perfect time to inovate, be different and create your own company.
  • 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!
  • Ragnar-Kon
    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...
  • jerreece
    According to CNNMoney.com:
    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.
  • Computerrock1
    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...
  • greenscope
    well, it didn't go over 9000 ...
  • ethanolson
    Well, being a public company pushes HP into pandering to their shareholders instead of ethics.
  • 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?