HP cutting IT workforce 58% by 2008

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.

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TOPICS: Hewlett-Packard
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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. 

Topic: Hewlett-Packard

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9 comments
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  • Not good

    Talk about a shakeup! This is pretty bad.

    http://opendomain.blogspot.com/
    opensourcepro
  • Will it work?

    Is he another accountant taking a gamble with his future or does he actually understand technology?
    joegoh@...
    • It will hurt, work, and then break . . .

      Randy Mott worked for WalMart before he become the CIO at Dell. He brings with him some very strong views about IT culture. He also believes in spending caps. (IT spending at Dell could not exceed 1% of total revenue while he was at Dell). Randy Mott also believes in circular employement.

      If you work at the HP IT shop, my suggestion as a former Dell IT shop professional is to run (do not walk) to the door and find another job or start your own business.

      Randy Mott will overwork, underpay, and start retention audits at the HP IT group. It will shrink, morale will suffer, and staff should seriously consider leaving now.
      startx.jeff
      • It's ALREADY Hurting

        This has been known within HP IT for over 9 months now. And it is already hurting. Contractors are being let go. HP personnel are being let go. Massive shifting of responsability from US to India, Singapore, China.

        Supposedly a "Linux" company but you can't get internal support for Linux desktops. Sigh, Bill and Dave would be SHOCKED at what this company has become.

        As Monty Python said.... "RUN AWWWWAAAAYYYY..."

        Sodbuster27
        Sodbuster27
        • Well, duh!

          "Massive shifting of responsability from US to India, Singapore, China."

          Given recent events, it's clear that management is only concerned about looking out for #1.
          Techboy_z
  • Automating IT?....

    Better come up with a scheme to automate management and board operations. An AI system that makes decisions based first on legal criteria before others. These exec/C*O types are outta control in this country! String 'em up!
    Techboy_z
  • India will be Happy!!!! ]:)

    India and China will be getting some low
    paying jobs.


    ]:)
    Linux User 1
  • It would be more useful to know what kind of platforms the IT is using

    [i]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.[/i]

    at HP and they eat away %54 of the budget. What kind of h/w and s/w will replace the currnet platforms ??

    If it is possible to reduce the IT budget by so much, the current deployment must be extremely inefficient.

    It definitely is worth watching to see how this change will play out.

    dT
    Dr_T
  • I wonder how much a company wastes in middle to higher management positions

    In the last 7-9 years, the "upper management" has been so "cost sensitive" to become too "trigger-happy" butchering entire divisions out of their existence.

    I can safely bet that salaries + benefits of these "cost sensitive" people far exceed the same for all staffers who at least contribute something. In a sense the elimination of large staff positions saves money for the positions of those in management...


    A good manager is invaluable: they can motivate people to WANT to be productive. Unfortunately, most managers are the opposite: they pretty much try to squezze work out of the people bellow them so that they have something to present as THEIRs, all the while they try to keep the productive people hidden, lest the truth comes out.

    From my experience there is at most ONE good leader for every 40-50 bad ones (and 5-10 REAL bad ones) .....

    dT
    Dr_T