HP to cut 24,600 jobs

Posted on 16 Sep 2008 at 12:38

HP plans to cut 24,600 jobs as it looks to cut costs following a recent acquisition. Although the company has just splashed out £7.4 billion to acquire IT services provider Electronic Data Systems (EDS), it will be shedding 7.5 per cent of its workforce over the next three years.

Nearly half the reduction will take place in the US and most of the job losses will be to EDS employees. The company did, however, claim that it will replace half of the jobs in new areas of its services business.

HP has bought out the company as it looks to challenge IBM's dominance in the computer services arena in private and public sector organisations. Businesses in the UK and US are most likely to see the benefits due to EDS' strong performance in these countries.

Despite the job losses, HP's chairman and chief executive Mark Hurd reckons the company will build on its previous history of successfully integrating new companies. In 2002 the company merged with Compaq Computer, which propelled HP to new heights.

"We are good at integrating companies ... I believe we will do it well," said Hurd.

Author: Dawinderpal Sahota

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