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.
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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