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HP To Cut 9,000 Jobs Building Cloud Infrastructure
The job losses, part of the second phase of its integration of EDS

HP said first thing Tuesday morning that it will cut another 9,000 jobs over the next three years, take a billion dollars in restructuring charges, invest another billion dollars in its EDS-swollen services business and hire 6,000 people in sales and delivery.

The job losses, part of the second phase of its integration of EDS, will come from creating fully automated state-of-the-art commercial data centers, the basis of enterprise cloud services.

Theses data centers, where corporate clients will be encouraged to migrate their applications, will be built on what HP calls its Converged Infrastructure and operated by its management software.

The company claims users will see efficiency gains and says automating services in cloud computing will dictate the next 10 years.

It means to take half the charges in the third quarter and whatever remains by the end of fiscal 2013. Standardizing its data centers is supposed to save it a billion dollars a year, a figure that should work out to somewhere between $500 million and $700 million net after the reinvestment. HP currently has a worldwide staff of around 304,000 people.

About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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