HP Could Sell or Shut Down Part Of Its Enterprise Services Unit, Ex-Employee Says

Meg Whitman FingerPointing

HP is internally discussing selling part of HP ES, known as the Business Process Outsourcing unit, or it might shut that business down altogether, one employee that just left the company told us.

This unit lets big companies hire HP to do tasks such as CRM, HR and payroll, accounting. This is an area that is growing rapidly for other companies. SAP just spent $3.4 billion to acquire SuccessFactors, for instance.

If HP keeps BPO, it will likely still lay off many workers and send those jobs offshore, another source told us.

Overall, the HP ES unit could see a good 10,000 to 15,000 jobs cut, Bloomberg reports.

Last quarter, ES reported $8.6 billion in revenue. At the time, it was HP’s second largest unit. (The PC unit was the biggest — and not by much.) HP has since reorganized.

We expect official word on these layoffs as part of HP’s earnings on May 23.

Don’t miss: The 7 Biggest Ways Meg Whitman Is Struggling At HP

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