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Friday 2 December 2016

Hewlett-Packard to cut 9,000 jobs worldwide

Hugo Miller and Katie Hoffmann

Published 01/06/2010 | 15:58

Hewlett-Packard, the world’s largest personal-computer maker, plans to cut 9,000 jobs and take a $1bn restructuring charge as it beefs up its computer-services business to compete with International Business Machines.

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HP is taking the steps to modernise its data centers and provide more automated services to customers at a lower cost, it said today in a regulatory filing.

The California-based company plans to replace about 6,000 of the eliminated positions in various countries.

“These sets of actions will enable HP to grow better than the market,” Ann Livermore, executive vice-president for enterprise business, said today on a conference call.

“This is a substantial opportunity for us and something that we think is a good opportunity for our clients as well.”

It is not yet known what impact the move will have on HP's Irish workforce, which is around 4,000 people. It employs more than 300,000 worldwide.

The job cuts come after Hewlett-Packard raised its 2010 forecast last month for the third time since November as results beat analysts’ estimates on a revival in business spending.

The company is looking to expand into more profitable services after the recession crimped corporate budgets for computer equipment.

HP said the $1bn in expenses for severance costs and asset impairments will be applied between now and fiscal 2013.

The moves will result in net annual savings of $500m to $700m by the end of fiscal 2013, the company said.

Hewlett-Packard fell 17 cents to $45.84 at 10am in New York Stock Exchange composite trading. The stock had dropped 11pc this year before today.

Bloomberg

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