“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.