HP eliminating 9000 positions, Canadian impact unknown

Hewlett-Packard Co. (NYSE: HPQ) has announced plans to cut 9,000 jobs as it restructures its enterprise services business and automates the services it offers enterprise customers.

An HP spokesperson told CDN that a geographic breakdown of the cuts is currently unavailable as final decisions have not yet been made. As well, HP said it plans to replace approximately 6,000 of those positions to increase sales and delivery services, meaning a net loss of some 3000 positions globally.

The company has spent the last 20 months integrating EDS, the consultancy and services business it acquired in 2008.

As part of the restructuring, HP will consolidate the data centers and management platforms it uses to deliver enterprise services, taking the opportunity to automate many aspects of its work. That automation and consolidation will allow it to eliminate around 9,000 jobs, it said Tuesday.

The job cuts will come over a number of years, and will force HP to take a charge of around US$1 billion against revenue over the same period. HP expects the changes to result in savings of between $500 million and $700 million after reinvestment.

— With files from IDG News Service.

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Jim Love, Chief Content Officer, IT World Canada
Jeff Jedras
Jeff Jedras
A veteran technology and business journalist, Jeff Jedras began his career in technology journalism in the late 1990s, covering the booming (and later busting) Ottawa technology sector for Silicon Valley North and the Ottawa Business Journal, as well as everything from municipal politics to real estate. He later covered the technology scene in Vancouver before joining IT World Canada in Toronto in 2005, covering enterprise IT for ComputerWorld Canada. He would go on to cover the channel as an assistant editor with CDN. His writing has appeared in the Vancouver Sun, the Ottawa Citizen and a wide range of industry trade publications.

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