Feeds

HP, EDS slash internal spending

Says leaked memo

Choosing a cloud hosting partner with confidence

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. ®

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.