Hewlett-Packard cutting 24,600 jobs

Hewlett-Packard Co. will cut 24,600 jobs as it restructures as part of its purchase of Electronic Data Systems Corp.

The cuts amount to 7.5 per cent of the combined workforce of the companies, the personal computer and printer maker said in a release issued after the close of stock markets.

The cuts will take place over the next three years with roughly half of them taking place in the United States. The bulk of the cuts are expected to come within the EDS workforce.

HP said the cuts will save it approximately $1.8 billion US annually. The company will also record a charge of $1.7 billion US in the fourth quarter, including $1.4 billion US of which will be recorded as goodwill and about $300 million of which will be recorded taken as a restructuring charge.

HP, which is based in Palo Alto, Calif., bought Plano, Texas-based EDS, an information technology services provider, for $13.9 billion US. HP is moving to compete with IBM in the computer technology services sector.