
Gartner vice
president and analyst Mark Fabbi (right) compared Hewlett’s data center division to factory floor during the Industrial Revolution. “In the Industrial Revolution, they put things on an assembly line and didn’t need those jobs anymore,” he said. “This is the same thing applied to H-P, a hundred years later.”
In 2005, HP cut 15,300 jobs partly by consolidating data centers running the company’s own operations. In 2008, acquiring Electronic Data Systems, it cut 7.5% of the company, 25,000 people and reduced salaries of others by 20% percent in some cases. In May 2009, H.P. announced that it would cut a further 6,420 people.