HP to cut jobs, take $1b charge in restructuring effort

Hewlett-Packard is planning to cut 9,000 jobs and spend $1 billion as part of a restructuring effort designed to consolidate and strengthen its enterprise services.

HP currently has about 304,000 employees globally and is the world's largest technology company going by sales.

From CNET:

The company announced Tuesday that it plans to spend the money to invest in a series of commercial data centers that will offer enterprise customers a more integrated platform on which to run their businesses. The initiative will also consolidate HP's data centers, networks, and applications. But as a result of the increased streamlining and automation, HP expects to eliminate around 9,000 jobs, or about 3 percent of its work force, over the next few years.

To pay for the enterprise restructuring, HP will take a charge of about $1 billion over an unspecified number of years that will be included in its financial results. Once the restructuring is complete, the company said it expects to save around $1 billion each year before taxes and between $500 million and $700 million after taxes and reinvestments.

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Daryl Paranada is the associate web producer for Marketplace overseeing all daily website content and production, as well as producing multimedia features -- including the popular economic explainer series Whiteboard -- and special projects. Follow him on Twitter @darylparanada.


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