By Carl Bagh: Subscribe to Carl's RSS feed
June 1, 2010 12:32 PM EDT
HP announced plans to eliminate 9,000 jobs, an outcome of a plan to invest $1 billion, to fully automate and standardize its commercial data centers.
With its new investment plan it aims to consolidate its Enterprise Services’ commercial data centers, management platforms, networks, tools and applications to create a more scalable and automated IT infrastructure which will allow clients to shift their applications to these platforms.
The automation will allow HP to eliminate 9,000 jobs over the years.
“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.”
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HP will forgo $1 billion over years to fund this integration and automation, while the ensued transformation is due to generate $1 billion in annual savings.
TIMELINE:. Here is a chronology of key job cuts announced by HP in the last decade:
May 2002 - Announces 15,000 job cuts post merger with Compaq Computer Corp. Later announces 1,800 more cuts in Sept.
April 2005 - Cuts 10 percent of its workforce in its imaging and printing business in U.S and Puerto Rico. Some 2,000 workers accept voluntary severance package.
July 2005 - Announces plans to cut 14,500 jobs to cut cost by $1.9 billion a year.
Sept. 2008 - Reports plan to cut 24,600 jobs to generate savings from its acquisition of Electronic Data Systems Corp.
May 2009 - Says will layoff 6,400 of its employees as demand for its products dips.
June 2010- Plans to cut 9,000 jobs over years as it invests $1 billion to automate its computer services business.
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