HP Acquires EDS, Heads Begin To Roll
HP's acquisition of EDS may be good news for shareholders, but employees are looking at up coming bad news.
September 16, 2008
“Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate,” the announcement reads. “Approximately 7.5 percent of the combined company’s workforce, or about 24,600 employees, will be affected over the course of the program, with nearly half of the reductions occurring in the United States. HP will provide employees affected by this restructuring program with severance packages, counseling and job placement services.”
The plan will cost HP $1.7bn in the fourth quarter of fiscal 2008.
According to HP, the program will result in annual savings of about $1.8bn, a sum which is to be reinvested in services sales coverage, delivery, and emerging markets.