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Workers lose jobs as HP streamlines data centers with $1 billion


Hewlett Packard is moving to consolidate and automate its data centers, and will cut about 9,000 jobs as it does so. HP will, however, hire about 6,000 new workers in sales and services, but the additional job cuts follow others that HP has made as part of its data centre consolidation.

In 2005, it cut 15,300 jobs and in 2008, after acquiring Electronic Data Systems, another 25,000 people were laid off. The company will invest heavily in its enterprise services business in the future, though, dedicating about one $1 billion to the modernised data centers.

The EDS acquisition has become part of HP’s new focus on its enterprise services division, and the new data centres are being designed to improve the client experience. The division is a profitable one for HP, recording $8.7 billion in the first quarter of 2010 and having profit margins higher than its PC division.

Source | New York Times

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