HP to cut 24,600 jobs; to take $1.7 billion EDS charge
Mon Sep 15, 2008 8:13pm EDT
By Eric Auchard
SAN FRANCISCO (Reuters) - Hewlett-Packard Co plans to cut 7.5 percent of its work force, or 24,600 jobs, seeking to realize savings from its recent acquisition of Electronic Data Systems Corp, the company said on Monday.
HP said it would carry out the cutbacks over the next three years, while replacing about half the jobs in new areas of its services business. It announced the plan ahead of a meeting with Wall Street analysts to detail the merger plans.
Nearly half of the job reductions will take place in the United States, the Palo Alto, California-based company said.
EDS was headquartered in Plano, Texas, near Dallas.
"We are good at integrating companies ... I believe we will do it well," HP Chairman and Chief Executive Mark Hurd told financial analysts at the company's headquarters.
Hurd was referring to the company's 2002 mega-merger of HP and Compaq Computer and a succession of software deals HP has made in recent years to bolster its business helping automate how companies manage their networks and systems.
The $13.2 billion acquisition of EDS, a deal announced in May and closed in August, made HP the world's second largest provider of technology services, up from No. 5 previously.
Rival IBM is No. 1 in computer services, and HP's strategy takes aim at this dominance.
Mon Sep 15, 2008 8:13pm EDT
By Eric Auchard
SAN FRANCISCO (Reuters) - Hewlett-Packard Co plans to cut 7.5 percent of its work force, or 24,600 jobs, seeking to realize savings from its recent acquisition of Electronic Data Systems Corp, the company said on Monday.
HP said it would carry out the cutbacks over the next three years, while replacing about half the jobs in new areas of its services business. It announced the plan ahead of a meeting with Wall Street analysts to detail the merger plans.
Nearly half of the job reductions will take place in the United States, the Palo Alto, California-based company said.
EDS was headquartered in Plano, Texas, near Dallas.
"We are good at integrating companies ... I believe we will do it well," HP Chairman and Chief Executive Mark Hurd told financial analysts at the company's headquarters.
Hurd was referring to the company's 2002 mega-merger of HP and Compaq Computer and a succession of software deals HP has made in recent years to bolster its business helping automate how companies manage their networks and systems.
The $13.2 billion acquisition of EDS, a deal announced in May and closed in August, made HP the world's second largest provider of technology services, up from No. 5 previously.
Rival IBM is No. 1 in computer services, and HP's strategy takes aim at this dominance.
