Feeds

HP, EDS slash internal spending

Says leaked memo

Boost IT visibility and business value

HP owes EDS more than a little thanks for its respectable fourth quarter. But that hasn't stopped the IT giant from putting the financial squeeze on its new acquisition.

In a recent internal memo leaked to The Reg, EDS CEO Ron Rittenmeyer lays down "a series of corporate-wide actions to reduce discretionary spending."

According to the memo, the global IT services outfit will cut-back on employee reward programs, eliminate salary increases previously scheduled for February 1, limit hiring to revenue-generating positions, reduce agency and contractor spending, and limit company travel to customer activities only.

"These are difficult actions, but they are necessary in the current global economic environment," Rittenmeyer writes. "With all of us pulling together, we have an opportunity to increase market share and emerge from this downturn in a stronger competitive position.

"Great companies rise to the top in difficult times, such as these. I am confident we have the people, dedication and tenacity to meet and exceed this challenge."

EDS did not respond to repeated requests for comment. But a similar memo sent to HP employees has turned up at The Inquirer. Rittenmeyer says in his note that the "operational efficiencies" he lays down "are equivalent to those being undertaken and announced by HP’s other business groups."

In September, HP and CEO Mark "The Butcher" Hurd said the EDS acquisition would result in 24,600 jobs cuts as the two sprawling operations were consolidated. According to the Public and Commercial Services union, nearly 3,500 of those cuts would hit the UK over the next two years. And The Register has learned that HP could impose compulsory firings on EDS if it doesn't hit targets for voluntary redundancies in the first half of 2009. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.