HP To Lay Off 9,000
- By Becky Nagel
- June 01, 2010
Hewlett-Packard announced Monday that it will lay off 9,000 workers once its Enterprise Services division implements new "state-of-the-art" datacenters.
The consolidated datacenters -- running on HP's Converged Infrastructure software -- will be standardized and "fully automatic," the company announced, making 9,000 positions redundant over the next few years. According to reports, the company will hire thousands of new sales and marketing professionals as part of the restructuring, reducing the total number of jobs lost.
The project will cost HP approximately $1 billion to implement, with projected savings of $500 million to $700 million per year once complete, the company announced.
"HP will consolidate Enterprise Services' commercial data centers, management platforms, networks, tools and applications to create a more scalable, modernized and automated IT infrastructure that will better serve its clients' needs," the announcement explained. "[This] transformation will enhance client experience and apply HP industry-leading technology to the services business."