HP cutting IT workforce 58% by 2008

Summary:Speaking at a conference in Singapore, HP CIO Randy Mott explained how his company is going to be a poster child for automating IT. The former Dell CIO said HP is targeting a spend of only 25 percent of IT resources on support and the other 75 percent on innovations by 2008.

Speaking at a conference in Singapore, HP CIO Randy Mott explained how his company is going to be a poster child for automating IT. The former Dell CIO said HP is targeting a spend of only 25 percent of IT resources on support and the other 75 percent on innovations by 2008. The current IT support spend is 54 percent. Mott also plans to reduce the IT staffing from more than 19,000 to 8,000 by its fiscal year 2008. The 85 data centers supporting HP's internal IT operations will be reduced to 6 in FY 2008, the server farm will be reduced by 30 percent and 60 percent of HP's legacy applications will be shelved. The net benefit, according to Mott, will be $1 billion in annual savings. HP's large customers will be watching closely to see if Mott succeeds. If so, the company's IT services business may be able to translate HP's success in transforming its own technology infrastructure into customer wins. 

Topics: Hewlett-Packard

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