EDS Middle East expected to escape dramatic HP cull

Middle East EDS joint venture not expected to be affected by HP job cuts

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By  Imthishan Giado Published  September 18, 2008

IT services firm EDS’ lean operational structure in the Middle East is likely to mean that it emerges unscathed from worldwide job cuts recently announced by new parent HP.

That’s the verdict of a regional source close to both companies, who predicts that as EDS has no official presence in the region – and instead operates through a joint venture with integrator Injazat – job losses here will be minimal.

“The Middle East will not be impacted in the sense that the presence of EDS is very small – and the presence is within a joint venture,” said the source. “You don’t fire people from a joint venture until you decide what you want to do with that JV – is it going to continue as a JV, are you going to buy it off, close it, and so on.”

HP plans to shed more than 26,000 staff across the globe as part of a programme to integrate EDS, which it bought for $13.9 billion in a bid to strengthen its IT services business.

“I don’t think anybody is immediately at risk – and the more I look at it, the more I fail to find anybody who’d feel threatened by this announcement in the Middle East,” added the source.

In an earlier statement to itp.net, HP Middle East’s TSG corporate communications manager Kholoud Barakat said that decisions regarding workforce reductions on a Middle East level were still being made. “We recognise that this is a time of uncertainty, but until information becomes available, our focus needs to remain on our current responsibilities,” she said.

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