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Hewlett-Packard will lay off about 24,600 employees over the next three years in an effort to streamline the company following its $13.9 billion acquisition of Electronic Data Systems last month, the company announced Monday.
The layoffs will be part of a three-year restructuring program, HP said in a statement. The company will lay off about 7.5 percent of its workers during that time, with nearly half of the reductions coming from HP's U.S. workforce, HP said.
About half of the positions will eventually be replaced, the company said.
The restructuring program is expected to save HP about US$1.8 billion each year, HP said. HP will take a $1.7 billion charge in the fourth quarter of 2008 related to the restructuring program.
The acquisition of systems integrator EDS was intended to give HP a comprehensive portfolio of IT products to help customers manage and improve their technology systems, HP said. (See Hottest tech merger & acquisition deals of 2008)
"HP now has the broadest technology capabilities in the market to meet customer needs today and in the future," Mark Hurd, HP chairman and CEO said in a statement. "HP has a strong track record of making acquisitions and integrating them to capture leading market positions."
The company is holding a meeting with financial analysts Monday afternoon at which it is also discussing its plans for integrating EDS.
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Comments (5)
Right-sizing, wrong directionBy ComplyAnt on September 18, 2008, 5:22 amAs a veteran of 20 years in the "IT industry" some of what "anon" says is true. There has been spend without quantifiable return, and money thrown at business problems...
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hacking for $ may be a new IT industry alternativeBy Anon on September 17, 2008, 7:49 pmIn light of the fact that american corps, for the most part, do not like american IT workers why should american IT workers like american corps?
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IT SheddingBy Dr Bob Hacker on September 17, 2008, 6:17 pmQuite the contrary is true. GM, as one example, stupidly shed the best IT staff on the planet to the delight of their competition. As the bean counters apparently...
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IT shedding Jobs, right-sizingBy Anon on September 17, 2008, 12:31 pmThe 150 kilo chicken is coming home to roost. As management begins to pull their head from the clouds and deal with the realities at-hand, the data center and...
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where is IT industry heading this year?By Anonymous on September 17, 2008, 4:55 amwhere is IT industry heading this year?
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