HP to cut nearly 25,000 jobs as part of EDS integration...

Hewlett-Packard is releasing details of its plans to integrate EDS into growth strategy, including a restructuring plan for the EDS business group that will reduce the workforce by almost 25,000 employees - half of which are in the U.S. - over the next three years. From HP's release:

The restructuring program will take place over three years and includes a workforce reduction that will streamline the combined company’s services businesses. Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate. Approximately 7.5 percent of the combined company’s workforce, or about 24,600 employees, will be affected over the course of the program, with nearly half of the reductions occurring in the United States. HP will provide employees affected by this restructuring program with severance packages, counseling and job placement services. HP expects to replace roughly half of these positions over the next three years to create a global workforce that has the right blend of services delivery capabilities to address the diversity of its markets and customers worldwide.

The company said it expects the restructuring will result in a cost savings of about $1.8 billion, net of reinvestment in other areas. The company will be recording a charge of $1.7 billion in Q4 2008 - $1.4 billion of which will be recorded as goodwill and $0.3 billion of which will be recorded as a restructuring charge that will be included in HP’s GAAP financial results.

In the analyst’s meeting this afternoon, the company is expected to discuss its broad offerings that CIOs might consider as they rethink their technology infrastrutures and consider outsourcing or moving into services through the cloud.