Hewlett-Packard plans to spend $1 billion to bolster its corporate services business, and will shrink its workforce by 3,000 jobs over three years as it consolidates related operations.
HP, the world's largest technology company by sales, said on Tuesday it would record a $1-billion charge through its 2013 fiscal year. Half of the charge will be taken in HP's third quarter.
On a net basis, the company said it will save $500 million to $700 million annually by the end of its 2013 fiscal year.
The company plans to cut 9,000 jobs, but will replace about 6,000 of those positions, adding that the changes to the workforce will be made over time and vary by country.
(Reporting by Franklin Paul; Editing by Derek Caney)