A partition manager relocates a logical partition from a primary shared processor pool to a secondary shared processor pool in response to a predetermined condition, such as a hardware failure. The relocated logical partition is allocated a smaller quantity of processing units from the secondary pool than it was allocated from the primary pool. A quantity of processing units reserved for a second logical partition is identified in the secondary shared processor pool, and a portion of those reserved processing units are allocated to the relocated logical partition. The reserved processing units may be redistributed among multiple relocated logical partitions.