HP looks to boost margins by axing 3,000 jobs over next 36 months

invisibleSHIELD case for iPad“Hewlett-Packard Co. (HPQ) said it aims to boost margins by cutting jobs and reallocating spending to more profitable technology services, shrinking its workforce by a net 3,000 jobs, or 1 percent, over three years,” Ritsuko Ando and Franklin Paul report for Reuters.

“The move, which will result in a $1 billion charge, comes as rivals like IBM (IBM) and Cisco Systems Inc (CSCO) vie for supremacy in the lucrative business of fitting out and helping run corporate data centers that handle communications and store huge amounts of information,” Ando and Paul report.

“HP made a major expansion into technology services with its $14 billion acquisition of EDS in 2008, and it said Tuesday’s announcement was a further attempt to bolster its enterprise business,” Ando and Paul report. “‘Over the past 20 months, we focused on integrating EDS and improving profitability,’ said Tom Iannotti, senior vice president and general manager of HP’s Enterprise Services. ‘Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business.'”

Ando and Paul report, “HP plans to cut 9,000 jobs over three years as it shuts down older data centers. But it will also add 6,000 new positions over the same period as it invests in more advanced data centers and expands its global operations.”

Full article here.


  1. So they will cut 9000 experienced, loyal employees and will hire 6000 new, inexperienced employees, who will be damn glad they have a job, at significantly less money per employee. Sounds like a winner to me – although it may not be a winner for the poor customers who have to deal with the new, inexperienced employees.

  2. It’s just the beginning. Those companies out there trying to compete with the vertically integrated Apple are going to struggle mightily.

    That’s the real attraction of Android to the tablet and phone makers. If you don’t have the software and have to pay for it on each unit you sell, it seriously cuts into your profitability. As the prices come down on the units themselves, this pressure will become unbearable.

    In the phone and tablet market Microshaft is caught in a very tight vice, and Google and Apple will keep tightening the vice as Ballmers head turns red and explodes.

  3. Spot on, HP top mgmt cuts cost by running up cost for their customers who’s services are now handled by clueless (and foreign) newbies and waste lots of time dealing with the effects above proces which deteriorated service delivered. All the time hiding behind approriately formulated SLA’s that let them get away with it mostly. Isn’t IT great…The experienced guys have been forced to leave and see what they build fall to shambles at customer expence. All for the stockholders! Viva short-term thinking!!
    Stockholders forget that jobless people are not going to be consuming much as “good little consumers” should and that will ultimately hurt them much more than they gain now.


  4. IT jobs are not what they used to be. We are just commodities too. Find the cheapest head to fill a job even if they have no experince. This is why I’m trying to find a new career . Everything is marginalized down to money nowadays ..

  5. HPUX, Compaq, Linux all gone and disappear into a blackHole, gives one pause on what can they possibly do with WebOS. My dearest wish upon my worst enemy is a HP PC, HP scanner, and HP tech support. The Heaping Pile is just a future Dell in the making…

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