Hewlett-Packard to shed 24,600 jobs in business shake-up

Hewlett-Packard (HP), the world’s largest computer company, is to cut 24,600 jobs as part of a shake-up of its business.

The cuts, which account for 7.5% of its workforce, will take place over the next three years as it combines operations with Electronic Data Systems (EDS), the technology company it recently bought.

HR, finance, IT and procurement departments are expected to bear the brunt of the cuts, with EDS employees, mostly based in the US, likely to lose out. Once completed, the restructuring programme is expected to result in annual cost savings of approximately $1.8bn (£900m).

In a statement the company said: “Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate. HP will provide employees affected by this restructuring programme with severance packages, counselling and job placement services.”

The company said that it eventually planned to replace half the positions as different jobs in different departments within the company.

HP’s $13.9bn (£7bn) takeover of EDS was announced in May 2008.

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