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HP To Cut Some Autonomy Jobs

By Steven Burke
January 14, 2013    6:31 PM ET

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Hewlett-Packard's Autonomy Software business unit, which was responsible in large part for the whopping $8.8 billion charge against earnings for HP in the fourth fiscal quarter ended Oct. 31, is cutting some jobs.

HP Autonomy Software boss Robert Youngjohns Monday informed Autonomy employees in an internal memo that there will be some job cuts as the result of a "transition" in the Autonomy Aurasma "augmented reality" software business for mobile devices.

AllThingsD first reported on the Autonomy layoffs in December, saying about 70 Autonomy jobs would be eliminated.

[Related: HP's Autonomy Mishap: From High Expectations To High Anxiety ]

The cuts come after HP said in November that it was taking the $8.8 billion charge after discovering what it called "serious accounting improprieties" by Autonomy, the onetime highly touted cloud software company HP acquired for $11.1 billion in October 2011.

HP fired Autonomy founder Mike Lynch last May after what the company called a significant decline in Autonomy license revenue. Lynch is now engaged in a highly public battle with HP and is denying the claims of accounting improprieties.

In the internal HP memo, Youngjohns, the former Microsoft North American division president who took the top Autonomy job last September, said the job cuts come as a result of the "commercialization and revenue generation" of the Aurasma augmented reality software product. That Aurasma 2.0 scenario includes plans to feature Aurasma in HP's printing business. Among the initiatives, said Youngjohns, is an HP Live Photo app for Apple's iPhone product.

NEXT: Autonomy Software Boss Talks About Job Cuts

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