HP CEO waxes lyrical about 'consolidation' following job cuts

Mark Hurd says firm is 'bullish' about opportunities ahead
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HP’s CEO has spoken of the benefits of consolidating and automating its data centres, a day after announcing 9,000 job cuts in its Enterprise Services division.

Without specifically addressing the redundancies, Mark Hurd told the Bank of America Merrill Lynch US Technology Conference: “The investment we made yesterday is data centre consolidation – not too dissimilar to what we’ve done internally but the opportunity to leverage technology with... automation across the business.

“We believe there’s material amounts of cost to take out, but it’s not a cost play per se, it’s an efficiency play that in turn not only lowers our cost but gives us a better opportunity to grow.

“We’re very bullish on the opportunity in front of us and we plan to invest into it.”

The firm announced 9,000 job cuts this week as part of a $1 billion development programme for HP Enterprise Services, which includes creating fully-automated commercial data centres.

The firm told PCR that the redundancies will be made over several years, with roughly 6,000 of those positions being replaced to increase sales and delivery services.

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