Hewlett-Packard to cut 24,600 jobs

Hewlett-Packard announced that it would eliminate 24,600 jobs, or 7.5 percent of its work force, as part of its plan for digesting Electronic Data Systems, the computer services giant that HP acquired for $13.9 billion in August.

 Almost half of the job cuts will occur
in the United States. The company, based in Palo Alto, California,
expects the reorganization to result in annual cost reductions of
nearly $1.8 billion. Hewlett said it would record a $1.7 billion
charge in the fourth quarter tied to the layoffs.

The layoffs are the start of a
three-year plan in which HP will try to unify its existing services
business with EDS. Up to half of the eliminated positions may be
refilled over the course of the reorganization, HP said.