by Robert Bell
Posted 6/2/2010 11:33 am
Updated 1 year ago
Hewlett-Packard of Palo Alto, Calif. announced Tuesday that it will spend $1 billion consolidating and automating functions related to its Enterprise Services business, a move that will cut about 9,000 jobs over the next few years.
Meanwhile, Jane McMillian, a spokeswoman for Hewlett-Packard, who said Tuesday that "no final decisions have been made as to where those reductions would" take place, said Wednesday that H-P's restructuring and layoffs will not affect the Conway service center.
According to the Tuesday news release, Hewlett-Packard "will consolidate Enterprise Services' commercial data centers, management platforms, networks, tools and applications to create a more scalable, modernized and automated IT infrastructure that will better serve its clients' needs.
"As a result of productivity gains and automation, H-P expects to eliminate roughly 9,000 positions over a multiyear period to reinvest for further growth and to increase shareholder value," the news release said.
The move is expected to generate net annual savings of between $500 million and $700 million for the company, according to the release.
As of October, Hewlett-Packard employed about 304,000 people worldwide. McMillian told ArkansasBusiness.com via e-mail that the company plans to add about 6,000 jobs in sales and delivery services over the same period of time that it is eliminating the other positions.
Company officials interviewed by ArkansasBusiness.com would not say whether H-P's Conway center housed any Enterprise Services operations.
In 2008, Hewlett-Packard announced its plan to develop a $28 million, 150,000-SF center in Conway that would eventually employ 1,200 people.
The company opened the center in March (see inside photos) and employs about 600 people. But the company would not provide an exact figure or specify whether the consolidation would affect its plans to hire additional workers.
The state government provided the company with about $10 million in infrastructure development from the Governor's Quick Action Closing Fund, and the Conway Development Corp. built the facility, which it leases back to Hewlett-Packard.