Business Resources

A total of 24,600 employees who have worked for three years, or nearly 8 percent of all union employees successfully dismissed. Well this is the way in which HP.

The dismissal was related to HP’s plans to merge with Electronic Data Systems Corp.. (EDS), a technology services company had just bought. Prior to the planned acquisition by EDS, HP’s headcount reached 178,000 people and EDS had hired as many as 142,000 people. Mark Hurd, HP chief executive admitted to having bought EDS for USD 13.9 billion.

For this, HP has made saving money around USD 1.8 billion per year since the existence of such termination, until the corporate restructuring has been completed. HP and EDS had a combined profit in their work last year amounted to USD 38.8 billion. The combination is largely derived from HP’s business units during the period, namely the personal computer division. This is because HP is the No. 1 PC seller worldwide.

“Reduction of about 7.5 percent of the entire power officers today, most coming from within EDS, and nearly half are employees of the U.S..” Hurd said. Hurd became very aggressive to reduce the cost since he worked at HP in 2005. His first action earlier, the corporate restructuring that eliminated about 15,000 workers.

EDS is itself a business enterprise and a global technology services based in Plano, Texas. The company is more appropriate when defined as an outsourcing business that was built in 1962 by Ross Perot. In 1984, General Motors has bought, and in 1996 again became an independent company, then changed its name to EDS client. In 2006, EDS has 117,000 employees in 58 countries and is able to achieve revenue of USD 19.8 billion. EDS became one of the largest service company which has about 2,000 clients and get listed in the Fortune 500.