New from HP: The Pink Slip Jet 9000

Published on June 1, 2010
by John Paczkowski

LAYOFFS_BOBSHewlett-Packard currently has about 304,000 employees worldwide. Three years from now it will have 301,000.

HP today said it will reduce its employee roster by 3,000, or one percent of its workforce, over the next few years. Nine thousand workers will lose their jobs, with 6,000 new staff to be hired in the same period.

Evidently, the completion of HP’s integration with EDS, which it bought in 2008 for nearly $14 billion, has made the move necessary. And the continuing automation of the company’s computer services business has made it possible.

“We think the next 5 to 10 years will be all about automation,” Ann Livermore, Executive VP of HP’s enterprise business said during a conference call about the ugly news this morning. “These changes will allow HP to reinvest in further growth….We have a chance to further accelerate our competitive advantage. This is a substantial opportunity for us and something that we think is a good opportunity for our clients as well.”

HP expects to take a $1 billion charge for the cuts and says it anticipates they will will ultimately generate the same amount in annual savings.

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