HP to axe 25,000 jobs

 

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By Stuart Turton

Posted on 16 Sep 2008 at 08:33

HP will shed 24,600 jobs over the next three years as it works to integrate itself with EDS, the technology services company it recently acquired.

The figure represents 8% of its workforce, with nearly all the job losses occurring within EDS's ranks. According to HP the job cuts will principally affect staff in the US, with half of these jobs being outsourced to other countries.

The company says it expects the cuts to save it $1.8 billion a year following the restructuring. HP will also be recording a charge of $1.7 billion in the current quarter associated with a goodwill adjustment and other restructuring costs.

HP completed its acquisition of EDS in August, adding 142,000 staff to its existing 178,000 complement, as it seeks to challenge market leader IBM in the global service market.

EDS in best known in the UK for implementing the Oyster card system in London, and the payments system for the Child Support Agency, a project which garnered so much controversy it ultimately caused the resignation of CSA chief Doug Smith.