Data Centers

HP: Move to automate more data centers will cost some IT pros their jobs

In an effort to automate and streamline much of its business, HP lays off 9,000 workers but hire 6,000 with different types of skills.

HP made a call to its investors just before the market opened on June 1 to announce changes it will be making: A $1 billion investment in data center automation and charges against jobs cuts.

9,000 employees will be affected by job cuts at HP, many of these likely hold IT operations positions, such as system administrators. However, the company plans to hire 6,000 more people with IT architectural and sales skills.

Experts say that HP will move its customers to more standardized platforms and technologies, and potentially offer public and private cloud services. It will turn its focus to x86 applications for consolidation and virtualization rather than mainframe and Unix systems.

About

Toni Bowers is Managing Editor of TechRepublic and is the award-winning blogger of the Career Management blog. She has edited newsletters, books, and web sites pertaining to software, IT career, and IT management issues.

12 comments
wlportwashington
wlportwashington

HP did a diservice to the United States by off shoring their tech support which cost US workers their jobs. Now they add insult to injury by firing even more instead of crosstraining or better still re-hire those they fired originally. Mark Hurd, the CEO and the rest of the top execs should simpy quit and leave HP. Taht alone would save millions and keep jobs for the rest of the workers.

The 'G-Man.'
The 'G-Man.'

HP are a dying company anyway.

chatch
chatch

Have you looked at the second quarter earnings report?

pizza7
pizza7

I'm in agreement with what many of you are saying but also we have to look at this realistically. The US has the highest corporate tax levels in the world, we keep talking about taxing energy consumption, we keep promoting unionization, and if we move forward with this healthcare plan employers will once again get hit with more costs. If we want to keep more jobs here we need to make it easier to do business here. There is so much legislation being discussed and even when legislation passes no one seems to understand what's in the bill. Businesses need to know what to expect so they can properly plan. There is too much uncertainty. Government does not make this country great nor did it make this country the #1 economy on earth. More taxation and more regulations are not the answer to these problems. We need to return to free market principles.

gypkap
gypkap

can always go back to their garage and start making instruments again...

pivert
pivert

So they say to their personnel: we think you are to stupid to upgrade your skills. Nice vote of confidence.

p309_
p309_

Same thing happened where I am employed. The data center let go the help desk personnel, and others. The help desk personnel were forced to train their replacements also- they held a gun to their head-finish out their term, or forfeit their severance package. Foreigners flew over from India, and were trained, then flew back. Unreal- what a thing to do to your employees. I believe that government is to blame also- the regulations and taxes are killing our businesses. They're killing the goose that lays the golden egg with their greed and stupidity.

tomofumi
tomofumi

I feel sad for the US fellow workers, since I'm a system admin myself. Seems the trend will continue to go like this, as more and more servers becomes virtualized and fewer sysadmins required to keep the servers running.

Dknopp
Dknopp

Typical. Layoff people who are making higher amounts of money and tap into people who are out of work and willing to get hired for less. Meanwhile, upper managemnet is largely untouched.

ryumaou@hotmail.com
ryumaou@hotmail.com

I live in Houston, former home of Compaq, who was bought by HP back in 2001. Compaq used to regularly get rid of the bottom 10% of performers, even if they were meeting standards. From what I'm told, it really created a vicious, hostile work environment. I don't know if HP carried that on or not, but it wouldn't surprise me. I'm sure they'll use this as a reason to thin out the more highly paid employees, as you say. And, I just wonder how flooded the Houston IT market will be for the next couple months. Back in 2001/2002, it was pretty bad when the HP/Compaq "merger" cut loose all those contractors. Things evened out, of course, but a lot of people took salary hits to get working again. I'm sure a similar pattern is about to happen, for similar reasons. Even geeks have to eat.

LouCed
LouCed

This will bite them in the butt. SLA's are probably tight, and the KL and Central American folks come cheaper, but are not as productive. Some MBA is going to make a mint in bonuses.

AV .
AV .

My husband worked for Compaq in 2001 and became an HP employee during Carly Fiorina's reign. They kept him on for a year or so after the merger and then outsourced his job to India. He was forced to train his Indian counterpart or he wouldn't get his severance package. Geeks have to eat, so he did it, but it was a very demeaning experience, to say the least. Who wants to work for a company like HP? I'd rather flip burgers. AV