Hewlett Packard (NYSE: HPQ) To Slash 9,000 Jobs In Enterprise Service Business

Hewlett Packard (NYSE: HPQ) announced Tuesday that it will eliminate 9,000 jobs from its enterprise service business as it reinvests in automating the unit.

The world’s largest PC maker plans to take charges of about $1 billion over the next several years in order to fund the enterprise service business change.  Charges will also cover severance and other expenses related to the job cuts.

HP’s goal is to enhance its enterprise business clients’ experience by building fully automated commercial data centers that operate on its management software, positioning its enterprise service business for future growth.

“Over the past 20 months, we focused on integrating EDS and improving profitability,” said Tom Iannotti, senior vice president and general manager, HP Enterprise Services.  “These next-generation services will enable our clients to benefit from the combined technology and services leadership that only HP offers.”

Once the transformation of the enterprise service business is complete, HP expects annual gross savings of roughly $1 billion.

The job cuts, come as a part of the strategic business, rather than the company’s need to cut costs.  Last month HP raised its 2010 earnings forecast.  HP plans to replace about 6,000 of the eliminated positions, but in different countries.