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HP lays off 24,000 following EDS acquisition

Three-year restructuring programme to save $1.8bn

HP will lay off about 24,600 employees over the next three years in an effort to streamline the company following its $13.9bn acquisition of EDS last month.

The layoffs will be part of a three-year restructuring programme, HP said. The company will lay off about 7.5 percent of its workers during that time, with nearly half of the reductions coming from HP's US workforce, HP said. About half of the positions will eventually be replaced, the company said.

The restructuring programme is expected to save HP about $1.8bn each year. HP will take a $1.7bn charge in the fourth quarter of 2008 related to the restructuring programme.

The acquisition of systems integrator EDS was intended to give HP a comprehensive portfolio of IT products to help customers manage and improve their technology systems, HP said.

"HP now has the broadest technology capabilities in the market to meet customer needs today and in the future," Mark Hurd, HP chairman and CEO said in a statement. "HP has a strong track record of making acquisitions and integrating them to capture leading market positions."


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