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In order to better compete with IBM, Hewlett-Packard (HP) will slash about 9,000 jobs and overhaul its computer-services businesses, Bloomberg reports.
In addition to the job cuts, HP also plans to take a $1 billion charge, both to help pay for severance packages and to bring the company's data centers up to snuff so that HP can provide more automated services.
"These sets of actions will enable HP to grow better than the market," Ann Livermore, executive vice president for enterprise business, said during a conference call. "This is a substantial opportunity for us and something that we think is a good opportunity for our clients as well."
Just last month HP had raised its 2010 forecast, the third time the company has done so since November. Results have consistently beat out analysts' expectations, however job cuts are nothing new for HP. During Chief Executive Officer Mark Hurd's five year reign, HP has handed out some 48,000 pink slips so far.