I saw the story in DIGG.com HP to cut nearly 25,000 jobs by 2011 money.cnn.com — HP to cut nearly 25,000 jobs by 2011
Computer maker to trim 7.5% of its payroll with half of cuts coming in the United States as it integrates outsourcing giant EDS.
Computer maker Hewlett-Packard said it will lay off 24,600 employees, or 7.5% of its workforce, over the next three years in a plan to integrate tech outsourcer Electronic Data Systems, which HP bought late last month. HP said the workforce reduction will result in annual cost savings of about $1.8 billion. Of the nearly 25,000 layoffs,
I could not believe; I got the mail FWD; below is the mail;

The fact that IT companies are in some tight spot has been evident from some time now. This is once again the season when employees are dreading the color pink. Satyam Computers has just started giving pink slips to its employees and around 4,500 of its employees are scheduled to get the boot. Wipro Technologies has put about 4-5% of its workforce or about 2,400-3,000 employees, under the scanner for non-performance. In February, TCS had given pink slips to 500 non-performers. IBM India also asked about 700 employees to leave, citing non-performance. In July, Patni Computer Systems fired 400 employees.
If the going is tough for these bigwigs, what about those in the lower rung? Mid tier companies are also doling out pink slips in all generosity! Hexaware has reportedly booted out 500 people and this does not include the 130 employees to be laid off due to the shut down of its office in Gurgaon. Ramco Systems laid off 142 employees.
Message from CEO, Mark Hurd
September 15, 2008

Today, HP is hosting a meeting for Securities Analysts. The purpose of the meeting is to present information on the integration of HP and EDS and the steps we’re taking to optimize the performance of our business. I wanted to share the details of this meeting at the same time as we announce them publicly.

EDS is a tremendous addition to HP and immediately catapults us into the top tier of globally scaled service providers. This acquisition follows our carefully executed strategy. First, we focused on building the leading hardware business. Then we developed our software offering to optimize and differentiate our hardware with a particular focus on management and IT automation. The next pillar of the portfolio is a world-class services business. With the acquisition of EDS, HP is now a true one-stop-shop for the enterprise and better able to meet client needs in an environment where more and more technology will be delivered through a services model.

I am confident that the integration will allow us to realize outstanding value, but there are also difficult actions that need to be taken.

By far the hardest part of this effort is restructuring our global workforce and today we are announcing the elimination of 24,600 positions. There is no way to downplay the magnitude of this. The restructuring impacts people, families and communities, and we undertake it with gravity and deliberation. We have the well-being and futures of more than 300,000 employees to consider, and we owe it to all of them to create a business that is healthy, strategically sound and growing.

Our priorities are: to ensure that our global workforce maps to our revenue and growth opportunities; to eliminate redundancies; and to maximize productivity. At the same time, we have developed comprehensive plans to ensure that our customers enjoy the benefits of a streamlined organization with no disruption to the exceptional service they expect and deserve.

We are also integrating EDS into a number of our ongoing transformations, including in IT, real estate, procurement and HR. During the past three years, HP has realized substantial efficiencies in these areas, and we expect to bring this expertise and discipline to our EDS services business with equal success. These actions will make us more competitive.

Additionally, we are integrating and aligning employee benefits programs. As decisions are finalized, any changes will be communicated to affected employees on a country-by-country basis. Further information about these changes and what they mean to you will follow shortly.

Transformation is never easy, but we are doing what’s necessary to compete and win in the long term. Our company is receiving a tremendous reception in the marketplace, and I am confident that we will emerge in a powerful position to generate accelerated growth, profitability, and outstanding opportunities for all of our stakeholders. In the meantime, the best all of us can do — for our company, our colleagues and our customers — is to maintain our focus and continue delivering great results.