HP takes ÔÇ£streamliningÔÇØ to new level

Hewlett-Packard (HP), the world's largest computer company, has announced plans to cut 24,600 jobs, 7.5 percent of its workforce, to streamline its business.   ┬á When HP announced in May that it would acquire technology-services firm Electronic Data Systems Corp. (EDS), layoffs were expected, but not on this scale. ┬á┬á The company plans to shed 24,600 jobs over the next three years, as it combines operations with EDS, whose employees are expected to bear the brunt of the cuts. Half of the jobs cuts will be in the US, in areas where there are traditionally overlaps within combined companies, such as finance, human resources and legal departments.┬á┬á HP expects to save $1.8 billion per year from the cuts once the restructuring is complete, but said it eventually planned to add back about half the positions as different jobs in different departments. ┬á┬á HP acquired EDS to enable it to challenge rival IBM and win more lucrative, long-term contracts in computing infrastructure. ┬á┬á The company will incur a $1.7 billion charge in the current quarter for a goodwill adjustment and other costs connected to the restructuring.┬á┬á At a conference with financial analysts Monday, HP chief financial officer Cathie Lesjak said the EDS deal is expected to add to HP's net profit in the 2010 fiscal year.┬á┬á The $13.9 billion takeover of EDS is HPÔÇÖs biggest acquisition since 2002 when it bought Compaq for $19 billion.   Read HP's statement here.┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á