HP announces massive layoffs as EDS acquisition completes
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As HP integrates it’s acquisition of EDS, the company has announced restructuring of it’s combined workforce. HP will shed approximately 7.5 percent! of it’s employees or about 24600 heads. About half of the reductions will occur in the United States. HP says it will provide employees affected by this restructuring program with severance packages, counseling and job placement services.
The restructuring program will take place over three years in an attempt to streamline the combined company’s services businesses. Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives.
HP expects to replace roughly half of these positions over the next 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.
The restructuring is expected to save HP approximately $1.8 billion annually. These savings will include re-investments in areas including sales coverage, delivery optimization and emerging markets. HP will be recording a charge of $1.7 billion in the fourth quarter of fiscal 2008 relating to the restructuring program.
