Thaindian News

PALO ALTO, CALIFORNIA (BNO NEWS) — Hewlett-Packard (HP) on Tuesday said it will cut around 9,000 jobs over the next few years to reinvest for growth and increase shareholder value.

HP said it expects the transformation to enhance client experience through new offerings and improved service delivery. It will also apply HP technology to the service business.

“Over the past 20 months, we focused on integrating EDS and improving profitability,” said Tom Lannotti, senior vice president and general manager of HP Enterprise Services. ” 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 client to benefit from the combined technology and services leadership that only HP offers.”

The company said the initiative is designed to better position its services for growth. “HP will consolidate Enterprise Services’ commercial data centers, management platforms, network, tools and applications to create a more scalable, modernized and automated IT infrastructure that will better serve its clients’ needs,” it said.

HP said it expects to eliminate around 9,000 positions over a multi-year period to reinvest, which is expected to boost growth and increase shareholder value.

To fund the investment, HP said it will take a charge of approximately $1 billion over a multi-year period that will be included in its GAAP financial results. “Once completed, this transformation is expected to generate annualized gross savings of approximately $1 billion and net savings after reinvestment in a range between $500 million and $700 million,” it said.