Hewlett-Packard announced that it would cut 9,000 jobs, and increase automation at data centers. HP, which employees around 304,000 employees also said that it would hire 6,000 employees in sales and service. Cuts are likely to be based in tech services, where HP says that will improve productivity through automation. the move is expected to save between $500 and $700 million a year once the three year expansion of its enterprise services division is completed. The move is part an effort to expand into all areas of commercial competing, including hardware, software and tech services. Analysts said that the move will allow HP to continue to focus on growth, and to lower costs.
See "Hewlett-Packard to cut jobs, invest $1 billion in expansion", Brandon Bailey, Los Angeles Times, June 1, 2010