HP culls contract workers: report

As many as 180 HP contract workers could be out of work because of a lack of funds behind transformational projects, according to a report.

As many as 180 HP contract workers could be out of work because of a lack of funds behind transformational projects, according to a report.

The Australian quotes sources that say funding is running low for the company's US$1 billion transformation program, which saw various projects that foster growth in the company championed across the globe.

If further funding was not found in the regions, selected projects would be stopped, according to the report, which said the funding's end has led to the company announcing job cuts this week.

HP said it would not "provide commentary on speculation or operational matters", neither confirming that contract workers would be culled nor whether projects would be cut.

The company only said that it was "part of normal business practice to review and align resources in line with business priorities" and pointed to one of the major projects that started as part of the transformation project — the massive datacentre it was building out at Eastern Creek — saying that construction finished last year and the company was moving onto systems migration and testing.

Tom Iannotti, HP's senior vice president and general manager of enterprise services, announced the program halfway through 2010. He said that following the EDS integration, the company was looking to streamline its infrastructure and consolidate datacentres, management platforms, networks and applications to enable it to scale the business up. The hope was to save US$1 billion a year.

Although the project required a US$1 billion injection and the company said it would cut 9000 jobs, it aimed thereby to save US$1 billion a year. The company did not say at the time how many Australian jobs that entailed.

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