HP to bank on procurement 'synergies' after job cuts

Global - HP's acquisition of EDS will result in approximately 25,000 job losses, but it has identified procurement synergies as a major driver going forward.

In a statement, HP said it will implement a three-year restructuring programme to align the combined company's overall structure with the current HP operating model.

The restructuring will see HP slashing some 24,600 jobs, or 7.5% of the combined company's workforce, with nearly half of the reductions occurring in the US.

"In addition to making changes to its global workforce to better serve its services customers, HP has identified synergies in corporate overhead functions, such as real estate, IT and procurement," the statement said.

When completed, HP said the restructuring is expected to result in annual cost savings of approximately US$1.8 billion.