16 Sep 2008

HP to layoff 24,600 employees!

Via: EETimes.com - HP to slash 24,600 jobs in wake of EDS acquisition

SAN FRANCISO— Hewlett-Packard Co. (HP) will eliminate 24,600 jobs, or about 7.5 percent of its workforce, as part of a three-year restructuring program in the wake of its $13.9 billion acquisition of Electronic Data Systems Inc. (EDS), the company said Monday (Sept. 15). Nearly half of the reductions will occur in the U.S., HP said.

Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, HP said.

The company said it expects to replace roughly half of these positions over the next three years to "create a global workforce that has the right blend of services delivery capabilities to address the diversity of its markets and customers worldwide."

Once completed, the restructuring program is expected to save HP about $1.8 billion per year, the company said.

HP said it would record a charge of $1.7 billion in the fourth quarter of fiscal 2008 relating to the restructuring program, $1.4 billion of which will be recorded as goodwill and $300 million of which will be recorded as a restructuring charge that will be included in HP's financial results.
HP's acquisition of EDS closed last month. The combined company reportedly employees about 320,000 people.

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