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.

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By David Goldman, CNNMoney.com staff writer

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. To top of page

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