HP to lay off 9000 staff, take $1 Billion to grow services business
By siliconindia   |   Wednesday, 02 June 2010, 15:02 IST   |    7 Comments
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HP to lay off 9000 staff, take $1 Billion to grow services business
Palo Alto: Hewlett-Packard (HP), the Palo Alto based information-technology company, plans to slash about 9000 jobs. Also, deepening its use of software, HP will take a $1 billion charge for paying severance and modernizing its data centers to provide more automated services to customers. However, the company provided no details on where the job cuts will occur, but they are likely to be concentrated in the operations that HP acquired when it bought Electronic Data Systems, the giant Texas-based tech services company, in 2008. According to HP, the cuts will result from automating systems and improved productivity. HP says the commercial data centers will help its corporate clients run their businesses faster and more efficiently. HP, the world's largest technology company by sales, said that 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.

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