Axe to fall on HP jobs?

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HP and EDS management are expected to meet later today to discuss how to integrate the two companies together, following HP's $13.9 billion acquisiton of EDS earlier this year.

However, unions are fearful that this integration will result in mass lay-offs, with some reports suggesting more than 1,000 jobs could be slashed from the UK alone.

"The combination of HP and EDS will create a leading force in global IT services," Mark Hurd, HP’s chairman and chief executive said when the acquisition was announced.

However, the combined company is unlikely to need as many people as are currently on the payroll.

“We’re waiting for details to emerge as we know that EDS and HP managers are meeting today. [Hopefully that will] give some detail on the impact on the workforce. Once we know those details we will put something formally out,” a spokesman for the Public and Commercial Services (PCS) union told IT PRO.

“There is a real fear that there will be job cuts,” he added, suggesting that a more formal announcement would be made once the union knew the full extent of the merger plans and their affect on staffing.

HP was remaining tight-lipped on the possibility of job cuts.

“We regularly review our operations to ensure they continue to offer the best possible value to HP customers and to ensure that they are aligned to our growth objectives," the company said in a statement issued to IT PRO.

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