HP cuts 25,000 jobs in EDS integration

HP plans to cut about 7.5 per cent of its workforce

HP has announced details of its expected restructuring following the acquisition of EDS in July.

The company is planning to shed nearly 25,000 jobs, about 7.5 per cent of its total workforce, and about half of the cuts will be made in the US.

HP chief executive Mark Hurd said at an analyst briefing that the restructuring will take three years, although half of the losses will come in the next 12 months.

"HP has a strong track record of making acquisitions and integrating them to capture leading market positions," he said. "We will deliver on the promise of HP and EDS for our customers and shareholders."

The jobs will be shed around the world over the three-year process, but the company expects to replace about half of them over time.

The location of the new workers was not announced, but is likely to be in the developing markets of India and the Far East.

HP expects to save $1.8bn annually from the restructuring and hopes that it will make it more competitive against other market players like IBM. The company will take a $1.7bn charge in restructuring costs.

The acquisition is also likely to see a change in focus for EDS. The company had traditionally been platform agnostic, but is expected to take a more pro-HP line in its hardware recommendations.

"HP now has the broadest technology capabilities in the market to meet customer needs today and in the future," Hurd said.