HP chief explains job cuts, datacentre consolidation

Summary:After the company announced 9,000 job cuts yesterday, its chief executive Mark Hurd has explained the business's refocusing on enterprise services

HP's chief executive Mark Hurd has elaborated on the company's to invest $1bn into its enterprise services unit and cut a net 3,000 jobs.

Speaking at the Bank of America Merrill Lynch technology conference, Hurd said HP's services unit, which is dominated by the acquisition of EDS, is now retooling its efforts to focus on research and development of IT infrastructure as a service.

Hurd wants to position HP as an IT utility company that can appeal to chief information officers. Now that HP has made EDS more efficient, Hurd said the company can do things "with R&D that we wanted to do from the beginning, but had to get the business to this state". HP will consolidate its datacentres for its services unit, standardise and automate, said Hurd. The effort will save money, but also give HP a more efficient platform to grow.

For more on this story, see HP CEO Mark Hurd talks datacenters, networking and Palm on ZDNet.com.

Topics: IT Employment

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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