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HP’s Autonomy to Cut Jobs While Adding Research Positions

Hewlett-Packard Corp.’s Autonomy Corp. software unit, which contributed to a $8.8 billion writedown last year, will eliminate some jobs related to a product that recognizes images using a mobile device’s camera.

The undisclosed number of job cuts at Aurasma, a digital display technology unit, will be offset by hiring more than 50 engineers at Autonomy for research and development, according to a memo sent to employees by Robert Youngjohns, Hewlett-Packard’s senior vice president for information management in charge of Autonomy.

Hewlett-Packard Chief Executive Officer Meg Whitman is seeking to turn around the Palo Alto, California-based company after five straight quarters of declining sales and years of botched deals, management tumult and strategic missteps. Hewlett-Packard, which agreed to buy Autonomy in 2011 for $10.3 billion as it sought to compete in the market for business-data services, wrote down the bulk of the investment after accusing the software company of miscategorizing sales.

“While a number of roles will remain largely unaffected by this, other roles within Aurasma will no longer be required going forward and some work force reduction is likely,” Youngjohns said in an e-mail to Autonomy employees that was provided by Hewlett-Packard.

Hewlett-Packard will continue to invest in Autonomy and devote resources to the business, and also focus on revenue generation for Aurasma, Youngjohns said in the memo.

To contact the reporter on this story: Karl Baker in New York at

To contact the editor responsible for this story: Tom Giles at

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