HP to cut 24,600 jobs

HP announces integration plan following EDS acquisition that will cut 7.5% of combined workforce

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By  Mark Sutton Published  September 16, 2008

HP has announced that it will cut 24,600 jobs as it undertakes a program to integrate services company EDS.

The job cuts, which represent 7.5% of the companies’ combined workforce, will be made over the next three years, with half occurring in the US. HP Middle East has confirmed to itp.net that decisions locally are being finalized.

“Decisions regarding workforce reductions on a local level (ME) are still being made. We recognize that this is a time of uncertainty, but until information becomes available, our focus needs to remain on our current responsibilities,” said Kholoud Barakat, PR & corporate communications manager at HP Middle East’s Technology Solutions Group.

“Each of the businesses and functions has specific goals and a timeline that they will communicate separately,” Barakat added.

HP closed the $13.9 billion acquisition of EDS at the end of August.

In a company statement, HP said that around half of the jobs cut would be replaced within three years, and that the program would create annual cost savings of $1.8 billion.

Mark Hurd, HP chairman and CEO commented: “HP now has the broadest technology capabilities in the market to meet customer needs today and in the future. HP has a strong track record of making acquisitions and integrating them to capture leading market positions. We will deliver on the promise of HP and EDS for our customers and shareholders.”

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