HP slashes over 24,000 jobs

HEWLETT PACKARD HAS announced plans to slash at least 24,600 jobs over the next three years. The outfit said restructuring could save $1.8 billion annually and help contribute to an expected fourth quarter charge of $1.7 billion.

The majority of the job cuts will occur in the United States, where the company's payroll has suffered from chronic bloat due to the recent acquisition of Electronic Data Systems (EDS) for a staggering $13.9 billion. Indeed, the massive purchase added at least 140,000 workers to HP's 172,000 employee list.

Analysts had long speculated that the world's largest computer manufacturer would eventually be forced to significantly cut redundant staff and other expenses.

HP's purchase of EDS was widely perceived as a serious attempt to compete with Big Blue - whose Global Services division produces approximately half of its revenues and the majority of its profits. However, as the Inquirer previously noted, HP might realise few operating synergies or advantages from the acquisition if corporate culture clash interferes with services integration. µ