Circuits Assembly Online Magazine - HP to Lay Off 24,600

PALO ALTO, CA – Tech giant Hewlett-Packard said it would cut 24,600 jobs worldwide – about half in the U.S. – during the next three years, in response to its acquisition and integration of Electronic Data Systems.

The computer maker purchased the Texas-based business services outsourcer last month as part of a $13.9 billion deal .

The cuts will affect 7.5% of the combined workforce, and HP will record a charge of $1.7 billion in the fourth quarter fiscal 2008 as a result of the restructuring program.

Once completed, the program is expected to result in annual cost savings of approximately $1.8 billion, HP said.