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24,600 HP layoffs to hit heavy in EDS divisions
Company declines to state effect on Palo Alto headquarters staffing

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As part of a streamlining plan following its acquisition of EDS, a Texas-based technology company, Hewlett-Packard announced plans to lay off about 24,600 employees.

A company spokeswoman could not say what effect the consolidation would have on HP's Palo Alto headquarters.

About half the layoffs will be in the United States, with more than half affecting EDS employees, she said.

Cuts are expected to be highest in legal, accounting, information technology, human relations, procurement and other support departments that would be duplicated with the merger, which was finalized in August, according to HP.

About 12,000 new positions will also be available in technology services, she said.

"HP has a strong track record of making acquisitions and integrating them to capture leading market positions. We will deliver on the promise of HP and EDS for our customers and shareholders," Chairman and CEO Mark Hurd said in a statement today (Monday).

The layoffs and other restructuring efforts are expected to save $1.8 billion per year, HP said.

The acquisition was valued at $13.9 billion.


Comments

Posted by LaidOff Central.net, a resident of the Palo Alto Hills neighborhood, on Feb 20, 2009 at 9:46 pm

There is a non-commercial, public message board for current and former HP employees who are currently or were in the past impacted by a work force reduction to share their frustrations, experiences and insights with other HP colleagues.

Please visit this non commercial, public forum at Web Link


Posted by Walter_E_Wallis, a resident of the Midtown neighborhood, on Feb 21, 2009 at 2:01 am
Walter_E_Wallis is a member (registered user) of Palo Alto Online

So long again, HP Way. Nice knowing you.


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