HP to cut 24,600 jobs

By Scott Moritz

Hewlett-Packard (HPQ) says it plans to cut 7.5% or 24,600 employees over the next three years as part of its integration of IT outsourcer EDS.

The company, which acquired EDS last month in a $14 billion deal, says it expects about half of the jobs to come from U.S. operations.

HP says it now expects to take a $1.7 billion restructuring charge in the fiscal fourth quarter.

The move comes about a week after CFO Cathie Lesjak told investors at a Citi Technology conference that “cost cutting is one of my favorite subjects.” Lesjak said at the time that HP planned to make deeper cost cuts in 2009 than it had in the two prior years.

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Gurpartap,

We aren’t going to be the driving force behind the world economy anymore, still a force, but this is the beginning of a new global economy in which our role will be significantly different.

Posted By ben, philly, pa : September 23, 2008 10:54 am

You are forgetting one thing. If you will outsource US job you will be digging another grave for yourself. US worker will be out of jobs.. there will be more forclousers and buying power of US worker will reduce. US People are the big spender which drives economy compare to all other people in the world. Long term affect will be that HP is filing for bakruptcy due to lack of sale of there resources and product. It’s US which drive the world economy.

Posted By Gurpartap, New York : September 17, 2008 10:34 pm

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