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HP will cut 9,000 jobs before hiring 6,000 new employees

Hewlett-Packard has announced it plans to cut 9,000 jobs over the next few years, though it promises to hire new employees after its planned $1 billion data center expansion is completed.

Around 6,000 of the 9,000 total jobs will be replaced as HP expands its sales force -- the company still has around 300,000 employees worldwide.  The job cuts are being caused now that HP is shutting down aging data centers, and will need a short amount of time to get new data centers ready.

"We have an opportunity to further accelerate our competitive advantage," HP officials said during a recent conference call.  "We think the next 10 years are going to be about who can automate the delivery of services."

For example, HP purchased Electronic Data Systems (EDS) in 2008, and has worked to integrate the company's technology into its portfolio.  HP has diligently worked to integrate EDS technology into HP's business lineup, and the integration is almost finished.

HP's efforts have led other companies to make similar acquisitions, as they all try to create a one stop shop kind of consolidated offering to consumers and companies.  Both Cisco Systems and IBM, major rivals to HP's corporate business, also seek methods to upgrade data centers with new technologies.

HP also will use Palm's technology to offer new cloud-based printing services, and could use Palm's other technologies for a renewed attempt to create new smartphones.

HP remains one of the largest PC and printer manufacturers in the world, but has had to expand to new markets due to lower demand and increased competition.





"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
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