Mainframe supplier Hitachi Data Systems (HDS) plans to lay off 600 employees as part of a major restructuring effort.
The reorganisation will see the company split into two independent businesses: a platform-specific one called Hitachi Data Systems (HDS) and an independent systems integration business called Hitachi Data Systems Solutions (HDSS). Each company will have its own profit and loss responsibility and will report to the HDS holding company, Hitachi, which is based in Japan.
The company did not specify where the redundancies would be made, but said they would be "primarily at the corporate staff level".
A Hitachi spokesman said the independent business units have been formed to focus more effectively on specific market segments. The HDS company will now include six independent business units, said the spokesman. A platform channel solution unit will provide technical services, storage area networks and interoperability labs, while a platform channels unit will sell HDS' traditional hardware.
An original equipment manufacturer (OEM) business unit will continue to manage HDS' relationship with Hewlett Packard and other OEMs, and a customer service unit will provide configuration, delivery and installation services.
An IT services group will also sell a range of services, including application hosting. An incubator business unit will focus on finding markets and ideas for HDS to develop.
HDS will continue to provide business consulting, application and systems integration services, competing against IBM and EMC in both areas.
The Hitachi spokesman said the restructuring is comparable with similar efforts by Hewlett Packard with its Agilent spin-off and 3Com with its Palm sell off, but said: "Ours is perhaps a bit more radical".
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