HP announces 9,000 global redundancies

HP claims 6,000 new roles will be created as part of its drive for new services

HP is to shed 9,000 workers worldwide as it seeks to streamline its organisation and lay the foundations for a range of next-generation products in its Enterprise Services division.

The vendor said that the $1bn (£686m) investment plan will create " market-leading technology and software to benefit clients through new offerings and improved service delivery".

This will involve consolidating the firm's Enterprise Services commercial datacentres, management platforms, networks, tools and applications to create a scalable, modernised and automated IT infrastructure.

HP said that the streamlining will allow it to "eliminate roughly 9,000 positions over a multi-year period to reinvest for further growth and increase shareholder value".

Tom Iannotti, senior vice president and general manager of HP Enterprise Services, explained that HP had spent the past 20 months focusing on the integration of EDS, and is now looking for growth opportunities.

"We have identified significant opportunities to grow and scale the business. These next-generation services will enable our clients to benefit from the combined technology and services leadership that HP offers," he said.

HP could not confirm whether any of the job cuts would fall in the UK, saying that no final decision had been made. The company also claimed that it will create 6,000 new roles on the back of the planned expansion.

HP has faced difficulties in the past with its handling of employees, and workers from various offices around the UK have threatened to strike over pay freezes, pension plan payments and redundancies.

Jim Hansen, a national officer at the Public and Commercial Services Union, said that he is "deeply concerned" to hear of the planned redundancies.

"The UK arm of HP had already suffered its share of cuts in the last two years yet, since the acquisition of EDS, it has posted huge profits. We are very surprised to hear HP has announced this through the press without consulting us first," he said.

HP cut 850 jobs in the UK last year as part of a total worldwide reduction of 5,700 workers.