It seems that US slowdown is gradually hitting hard on IT. Just after the announcement that Satyam Computers is giving pink slips to 4500 employees, the latest information of cutting down workforce come from Hewlett-Packard.

Hewlett-Packard plans to lay off 24,600 jobs. The number is approximately equal to 7.5% of total workforce. The decision to reduce workforce is supported to ensure savings due to its recent acquisition of Electronic Data Systems Corp.

The cutback of workforce will be carried for the next three years, cited familiar sources. Half of the cut off will be made in the new areas of its services business and will affect plants based in United States, the Palo Alto, and California.

The integration of the acquired company will charge HP around $1.7 billion in the fiscal fourth quarter ending October. The sources cited that its three year plan to go ahead with job reduction will help company to save $1.8 billion in annual cost savings.

HP acquired EDS in May for $13.2 billion. The enterprise value of the deal totals $13.9 billion which finally closed last month.

The sources cited that the company will provide employees affected by this restructuring program with severance packages, counseling and job placement services.

Renu Singh/ITVoir Network