HP to cut 24,600 jobs

SAN FRANCISCO - US TECHNOLOGY giant Hewlett-Packard (HP) said on Monday it would cut 24,600 jobs worldwide over the next three years as part of its integration with computer services firm Electronic Data Systems.

The job cuts would allow HP 'to restructure the EDS business group to streamline costs, invest in growth and drive shareholder value,' HP said in a statement.

About 7.5 per cent of the combined workforce would be affected, with about half of the cuts taking place in the United States, HP said.

The workforce reduction aims to 'streamline the combined company's services businesses,' and once complete was expected to 'result in annual cost savings of approximately US$1.8 billion (S$2.57 billion).'

In May, HP inked a deal to buy the Texas-based technology company for US$25 per share. After approval by shareholders as well as US and foreign regulators, the acquisition was finalised in August.

The new HP services includes annual revenues of more than US$38 billion and 210,000 employees, operating in more than 80 countries.

The deal was expected to create a global powerhouse in computer services to compete against IBM.

Northern California-based HP is among the world's largest IT companies, with revenue totaling US$110.4 billion for the four fiscal quarters ended April 30, 2008. -- AFP


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