Hewlett Packard to lay off 24,600 employees
Computer maker restructures after acquisition of EDS services firm
By Jim Carbone -- Purchasing, 9/17/2008 10:37:00 AM
Hewlett-Packard Co. will lay off 24,600 workers over the next three years because of its acquisition of technology services company Electronic Data Systems Corp.
The job cuts will streamline the combined company’s services businesses, which are about 7.5% of the total combined workforce.
HP has 178,000 workers and EDS has 142,000. The company says the layoffs will be spread across both companies and nearly half will be in the U.S. Once completed, the restructuring program is expected to result in annual cost savings of approximately $1.8 billion.
HP, based in Palo Alto, Calif., will be recording 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 $0.3 billion of which will be recorded as a restructuring charge. HP acquired EDS in a bid to better compete with IBM in the computer services business. HP and EDS had combined services revenue of $38.8 billion last year. IBM had $51.4 billion in total technology and business services revenue.
Also see: HP’spurchasing organization looks beyond price
Happy New Year
01/05/2009HP expands renewable energy use
11/26/2007
Now Playing: 