Plans to cut 9,000 jobs over a multi-year period
Hewlett-Packard said that it plans to spend $1bn in the NxG of its enterprise services business, and expects to shed roughly 9,000 positions over a multi-year period as a result of productivity gains and automation.
HP said that the initiative is designed to enhance the client experience and better position enterprise services for growth.
The company said that it will invest in automated commercial data centres built on its converged infrastructure and operated by its management software. It also plans to consolidate Enterprise Services’ commercial data centres, management platforms, networks, tools and applications to create a scalable, automated IT infrastructure.
HP said that it will enable clients to migrate their applications to these modernised infrastructure platforms. Upon completion, the transformation is expected to generate annualised gross savings of approximately $1bn and net savings after reinvestment in a range between $500m and $700m.
Tom Iannotti, senior vice president and general manager of HP Enterprise Services, said: “Over the past 20 months, we focused on integrating EDS and improving profitability. 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.”