HP To Cut 9,000 Jobs Over Three Years

Tech giant Hewlett-Packard has announced that it will be squeezing out 9,000 jobs from its Enterpriese Services segment as part of a $1 billion "investment" plan.

HP enterprise services SVP, Tom Iannotti, argued that "Over the past 20 months, we focused on integrating EDS and improving profitability, [n]ow that the integration is largely complete, we have identified significant opportunities to grow and scale the business."

HP says that most of the job cuts would occur through attrition, when employees are encouraged to walk away from their posts using a number of (legal) means.

The company has already said that it would take a one-off $1 billion charge to cover administrative and other related costs as it tries to save up to $1 billion per year.

Much of the saving exercise would come as the company tries to reduce overlapping across its various segments and drive efficiencies using automation mechanisms and management platforms it acquired from Electronic Data Systems back in 2008.

The computer company employs around 304,000 (down from 310,000 end of 2008) in more than 170 countries. This number should fall just short of 300,000, following the creation of 6,000 new jobs across the company, resulting with a net loss of 3,000 jobs by 2013.

While HP has not confirmed whether more redundancies could be on the horizon, one thing is certain; this is only the beginning and depending on the success of this first leg, HP might decide to be more aggressive in reducing headcount.