HP to cut nearly 25,000 jobs by 2011
Computer maker to trim 7.5% of its payroll with half of cuts coming in the United States as it integrates outsourcing giant EDS.
NEW YORK (CNNMoney.com) -- Computer maker Hewlett-Packard said it will lay off 24,600 employees, or 7.5% of its workforce, over the next three years in a plan to integrate tech outsourcer Electronic Data Systems, which HP bought late last month.
HP said the workforce reduction will result in annual cost savings of about $1.8 billion. Of the nearly 25,000 layoffs, HP said about half will come from workers in the United States.
"HP has a strong track record of making acquisitions and integrating them to capture leading market positions," said Mark Hurd, HP's chief executive, in a statement. "We will deliver on the promise of HP and EDS for our customers and shareholders."
A company spokesman said HP was cutting positions that were made redundant due to the acquisition of EDS, but the company expects to hire about 12,000 new employees over the next three years to fill new expansion needs.
HP (HPQ, Fortune 500) expects to take a $1.7 billion charge in its fourth quarter 2008 financial statement due to the restructuring. 
-
Check out our interactive timeline to see Steve Jobs' early struggles and recent victories. More -
How Apple's imperious, brilliant CEO revived the company and transformed American business. More -
From forgettable phones to disastrous desktops, Apple is able to recover fast. Play -
Arson. Scrappers. Blackouts. It's all part of business for the last tenant in Detroit's Packard Plant. More -
Investors think Detroit's foreclosed houses are a deal. Would you buy this one for $6,900? More -
These rising stars, like Facebook's Mark Zuckerberg, have great jobs to fill. Here's what they're looking for. More
