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HP's Cloud Computing Push Leads to Layoffs

Where is the enterprise heading? Cloud computing is one clear trend; more more automated data centers is another. As Datamation reports, Hewlett-Packard is making a big push into both these markets, but not without fallout.

HP hopes its layoff of 9,000 employees will help it to better compete against traditional IT services rivals like IBM, Oracle and Microsoft.


HP wants to get leaner and meaner to better compete with the likes of IBM, Oracle and Microsoft for a bigger cut of the massive IT services and cloud-computing market, so it's going to pink-slip some 9,000 employees in its enterprise services unit over the next three years while embracing some of the data center automation tools it's been pitching to customers.

In particular, HP (NYSE: HPQ) said it plans to invest in "fully automated, standardized, state-of-the-art commercial data centers" built on its Converged Infrastructure hardware platform, using on-demand software applications and incorporating mobile computing and security platforms favored by enterprise clients both in the U.S. and abroad.

The job cuts, which represent a small portion of the company's more than 300,000 employees, will cost HP more than $1 billion in one-time charges and write-offs over the three-year span.

Read the full story at Enterprise Networking Planet:
HP To Cut 9,000 Services Jobs, Ramp Up Data Center Automation