H-P to Slash 9,000 Jobs, Take $1B Charge

(H-P story updated with pre-market stock price and quote from executive.)
NEW YORK (TheStreet) -- Hewlett-Packard(HP) said Tuesday it will invest $1 billion in the next generation of its enterprise services business and eliminate 9,000 jobs.

H-P, in a statement, said it will cut the jobs over a multiyear period "to reinvest for further growth and to increase shareholder value."

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To fund this investment, H-P will take a charge of about $1 billion over a number of years.

The company said the completion of this charge could generate annualized gross savings of about $1 billion and net savings after reinvestment in a range of $500 million and $700 million.

"Over the past 20 months, we focused on integrating EDS and improving profitability," HP Enterprise Services senior vice president and general manager Tom Iannotti said. "Now that the integration is largely complete, we have identified significant opportunities to grow and scale the business. These next-generation services will enable our clients to benefit from the combined technology and services leadership that only HP offers."

HP stock is down 0.4% to $45.86 in pre-market trading.

-- Reported by Andrea Tse in New York

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