HP To Slash More Than 24,000 Jobs From EDS Deal

September 17th, 2008

In one more shock to a stunned Wall Street, Hewlett-Packard on Monday said it will cut more than 24,000 jobs over the next three years. Once completed, the restructuring is expected to mean an annual cost savings of about $1.8 billion.The announcement came at a securities analyst meeting where HP unveiled new plans to gain market share in a changing enterprise market.

At the core of the announcement is EDS. HP acquired the technology-services firm five months ago. Layoffs were expected, but slashing about 7.5 percent of the workforce was a surprise to analysts. It’s part of an effort to restructure EDS to streamline costs, invest in growth, and drive shareholder value, according to HP.

“HP now has the broadest technology capabilities in the market to meet customer needs today and in the future,” said Mark Hurd, HP chairman and chief executive officer. “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.”

Click here to read the rest of this story on Newsfactor.

Entry Filed under: Hot off the Press