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.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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