Feeds

HP's EDS acquisition to kill 24,600 jobs

This will Hurd a bit

Security for virtualized datacentres

There was little doubt employee heads would roll when Hewlett-Packard, owner of a massive IT services organization, paid $13.9bn for EDS, a similarly sprawling IT services outfit.

With Mark Hurd "the butcher" leading consolidation efforts at HP, employees could all but brace themselves for some substantial job culling.

Well, HP has finished tallying necks, and it says some 24,600 employees will lose their jobs in a "restructuring program" for the EDS business group to take place over the next three years.

The tech giant said workforce reduction will vary by country, based on local legal requirements and talks with works councils and employee representatives. Nearly half will occur in the US. The total number of layoffs planed equals about 7.5 per cent of the combined companies' workforce, according to HP.

Yet HP plans to replace roughly half of these positions over the three years "to create a global workforce that has the right blend of services delivery capabilities to address the diversity of its markets and customers worldwide."

Unless the half-and-half figure is purely a coincidence, this sounds like HP's restructuring plan is largely about shipping American EDS ops overseas.

HP said the job cuts are expected to result in annual savings for the company of about $1.8bn. It plans to reinvest the money in services sales coverage, delivery, and emerging markets.

The plan will cost HP $1.7bn in the fourth quarter of fiscal 2008. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.