Herndon,
Va. – Technology giant HP (NYSE: HPQ) said on
Tuesday that it will spend $1 billion to automate much of its data center
technology, resulting in the elimination of 9,000 jobs over the next few years.
The company said the move will provide new offerings and improved service
delivery to clients of its Enterprise Services business — launched last year
following its $13.9 billion acquisition of EDS.
The unit is based in Texas, but has major operations in Herndon, Virginia.
HP did not disclose the number of expected cuts by location.
"Over the
past 20 months, we focused on integrating EDS and improving
profitability," said Tom Iannotti, the senior vice president and general
manager of HP Enterprise Services.
"Now that the integration is largely
complete, we have identified significant opportunities to grow and scale the
business."
The company plans to consolidate the unit’s commercial data centers,
management platforms, networks, tools and applications.
Once completed, the
move is expected to save HP approximately $1 billion a year.
Related Links:
http://www.hp.com/hpinfo/newsroom/press/2010/100601a.html
