Hewlett Packard plans to cut another 9,000 jobs

Hewlett Packard plans to cut another 9,000 jobs

Hewlett Packard, the world's top computer maker, is in the midst of a major restructuring that would affect around 9,000 jobs over the next few years.

The new job cuts will be over and above the 6,700 jobs the company slashed last year.

HP, which is investing $1 billion in its enterprise services unit over the next few years, said it expects an annual saving of $500-$700 million post restructuring.

HP is planning fully automated, standardised, state-of-the-art commercial data centres and said the job cuts will mostly be the result of productivity gains and automation.

The data centres will be built on HP's converged infrastructure and operated by its industry-leading management software.

HP is planning a wholesale shift to the new infrastructure leveraging on its experience in its own IT transformation. HP said it would help clients to migrate their applications to these modernised infrastructure platforms that are faster and more efficient.

Palo Alto, California-based HP last month announced a 13 per cent jump in its fiscal second quarter net revenue at $30.8 billion.

HP's enterprise storage and servers (ESS) reported total revenue of $4.5 billion, up 31 per cent. Industry standard server revenue increased 54 per cent, while storage revenue increased 16 per cent with the midrange EVA product line up 3 per cent. Business Critical Systems revenue declined 17 per cent, while ESS blade revenue was up 45 per cent.

Operating profit was $571 million, or 12.6 per cent of revenue, up from $250 million, or 7.2 per cent of revenue, in the prior-year period.

GAAP diluted earnings per share (EPS) was $0.91, up from $0.71 in the prior-year period. Non-GAAP diluted EPS was $1.09, up from $0.86 in the prior-year period.

Second quarter revenue was up 11 per cent in the Americas to $13.5 billion. Revenue was up 11 per cent in Europe, the Middle East and Africa and up 19 per cent in Asia Pacific to $11.8 billion and $5.5 billion, respectively. When adjusted for the effects of currency, revenue was up 9 per cent in the Americas, up 7 per cent in Europe, the Middle East and Africa and up 10 per cent in Asia Pacific. Revenue from outside of the US in the second quarter accounted for 66 per cent of total HP revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) increasing 25 per cent while accounting for 10 per cent of total HP revenue.

HP's enterprise storage and servers (ESS) reported total revenue of $4.5 billion, up 31 per cent. Industry standard server revenue increased 54 per cent, while storage revenue increased 16 per cent with the midrange EVA product line up 3 per cent. Business Critical Systems revenue declined 17 per cent, while ESS blade revenue was up 45 per cent.

Ref: http://www.domain-b.com/companies/companies_h/hewlett_packard/20100601_plans_2.html