HP cuts 24,500 jobs following EDS buy
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IT giant to cut 24,500 jobs as it streamlines operations after buying IT services firm EDS
Hewlett-Packard (HP) will cut 24,600 jobs, and $1.8bn from its books over the next three years – 7.5% of its workforce – as it integrates IT services firm Electronic Data Systems (EDS).
The company bought EDS in August for $13.9bn, making the merged entity the world’s largest computer company and granting it a ready-made services division to better compete with global services leader IBM.
Half the job cuts are expected to occur in the US, with most of the losses expected to be among EDS employees particularly in finance, HR and legal departments. HP did not say what the split would be, but indicated that severance pay and restructuring costs for EDS employees would be $1.4bn while the same figure for HP would be $300m.
A statement from HP said the cuts were necessary to streamline the company’s business. CEO Mark Hurd said: “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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