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Sun, Jul 12, 2009 - 02:31 AM EDT — AAPL: 138.52 (+2.16, +1.58%) | NASDAQ: 1756.03 (+3.48, +0.2%)

Hewlett-Packard cuts 25,000 jobs

Tuesday, September 16, 2008 - 08:35 AM EDT

"The computer and printer maker Hewlett-Packard announced Monday that it would eliminate nearly 25,000 of its 320,000 jobs as part of its plan for digesting Electronic Data Systems, the computer services giant that H.P. acquired for $13.9 billion in August," Ashlee Vance reports for The New York Times.

"Mark V. Hurd, H.P.’s chief executive, discussed the layoffs, which amount to 7.5 percent of the company’s combined work force, at a meeting with securities analysts at a hotel here, near the San Francisco airport," Vance reports. "'I think most of you that follow us know I am a big believer that having the most efficient cost structure directly relates to your ability to scale and grow,' Mr. Hurd said at the meeting."

"According to H.P., almost half of the job cuts will occur in the United States. The company, based in Palo Alto, Calif., expects the restructuring to result in annual cost reductions of nearly $1.8 billion. H.P. said it would record a $1.7 billion charge in the fourth quarter tied to the layoffs," Vance reports.

"A number of analysts have expressed optimism around potential cost savings that can occur by eliminating overlap between the two companies in human resources, finance and other basic functions. Some of the expectations stem from the reputation has Mr. Hurd built both during his tenure at H.P. and in his previous job as chief executive of NCR," Vance reports. "The EDS purchase can be seen as part of a multi-year program at H.P. to round out its major product lines in the hopes of matching I.B.M."

Full article here.

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Sep 16, 08 - 08:59 am Comment from: Nutcracker

"...eliminate nearly 25,000 of its 320,000 jobs..."

that'd be about 12.8% of it's employees, not 7.5% ... ouch.

Sep 16, 08 - 09:01 am Comment from: Chris

Nutcracker, I believe your math is off this morning.

Sep 16, 08 - 09:02 am Comment from: Chris

(as well as your spelling)

Sep 16, 08 - 09:21 am Comment from: HolyMackerel

HP should have kept the Apple relationship going with the HP-badged iPod, then pressed Apple for a Mac-clone for sale to enterprise-only.

HP's possible push into Linux may spell them getting out of Win PCs and into services and printers alone - a long shot, but IBM did it with a purchase by Lenovo. Our company uses HP, but the margins must be very tight as the quality is not that good, yet we still keep buying them.

"Typed on an HP transported into Parallels"

Sep 16, 08 - 09:22 am Comment from: Jamie

@Chris

I was thinking grammar.

Sep 16, 08 - 09:29 am Comment from: Bluefin

Ahhh Carly... What a fine mess you've left ...

Probably not a good idea to be all over the news talking about the economy, now isn't it?

Sep 16, 08 - 09:30 am Comment from: Sheep Register

Here comes the global recession.

Sep 16, 08 - 09:47 am Comment from: Math Genius with a calculator

7.8125%?

Sep 16, 08 - 10:02 am Comment from: MacNScott

Isn't HP the top computer vendor in the US? AND they have to lay off 25,000 US employees?

Sep 16, 08 - 10:24 am Comment from: Ex-HPer

@MacNScott

HP acquired EDS. There is a lot of overlap in job functions, therefore layoffs. Nothing more, nothing less. It is just how these things go. For the people being layed off it sucks, but for the company it is a good situation.

Sep 16, 08 - 10:42 am Comment from: who cares about the company?

Layoffs mean more foreclosures, which means more bankfailures, which means more trouble for the entire economy, including the company!

Short term thinking is killing US.

Sep 16, 08 - 11:12 am Comment from: Jubei

When will Redmond ever cut 25K jobs? With so many money losing products, why is it that they are still so profitable?

Sep 16, 08 - 11:53 am Comment from: Joe Shmoe

NEWS BREAK!

"Whole world laid off .... analysts excited about potential cost savings ....."

Sep 16, 08 - 12:42 pm Comment from: Modbus

"There is a lot of overlap in job functions, therefore layoffs."

The same action is about to happen to Merrill Lynch.

Why blame Carly Fiorina, she had nothing to do with the EDS purchase.

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Sun, Jul 12, 2009 - 02:31 AM EDT — AAPL: 138.52 (+2.16, +1.58%) | NASDAQ: 1756.03 (+3.48, +0.2%)

Hewlett-Packard cuts 25,000 jobs

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Sun, Jul 12, 2009 - 02:31 AM EDT — AAPL: 138.52 (+2.16, +1.58%) | NASDAQ: 1756.03 (+3.48, +0.2%)

Hewlett-Packard cuts 25,000 jobs

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