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Hewlett-Packard to Slash Nearly 25,000 Jobs

Hewlett-Packard will lay off more than 24,000 workers as it integrates recently acquired technology services firm EDS into its own operations. The job cuts, which amount to roughly 7.5% of the combined company's workforce, will result in annual cost savings of $1.8 billion, H-P said Monday, ahead of an analyst meeting to discuss the move.

H-P is holding a special meeting with securities analysts Monday to provide more details on the integration plan and the financial aspects of the newly merged companies. H-P said Monday that it will take a charge of $1.7 billion in the fourth quarter of fiscal 2008 because of the restructuring, $1.4 billion of which will be recorded as goodwill, and $300 million of which will be recorded as a restructuring charge that will be included in H-P's GAAP financial results. The layoffs are significant even by H-P's standards; the company has focused on reducing costs and finding operating efficiencies under the hand of CEO Mark Hurd. Shortly after Hurd took over in 2005, the company announced plans to slash 15,000 jobs from its payroll.

The Street

Posted by | Mon, Sep 15, 2008 - 04:40 PM