Hewlett-Packard announced plans to cut 24,600 jobs, about 7.5 percent of its workforce, over the next three years as the company begins to integrate Electronic Data Systems into its business.  The company will offer lucrative severance packages, counseling and new job placement services for employees who are being released.

After the $13.9 billion HP acquisition of EDS, most of the 24,000 job cuts will come from EDS's job forces, though HP will slowly replace half of the jobs in new business sectors.  Half of the job cuts are expected to be U.S.-based jobs.  Corporate overhead positions like information technology, human resources, marketing, real estate, legal and finance will be hit especially hard when the job cuts begin; HP employees have reportedly been warned.

HP will "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."

HP purchased the company in an attempt to help compete with IBM, who is the only company now leading HP in computer services.  HP was ranked fifth overall, and received an important boost in the United States and United Kingdom, where EDS was stellar.

HP has 210,000 total employees worldwide, who help bring in more than 38 billion dollars in revenue per year, and the EDS acquisition will help the Palo Alto, CA-based company expand its technical outsourcing for HP and others.

“HP now has the broadest technology capabilities in the market to meet customer needs today and in the future,” said Mark Hurd, HP chairman and chief executive officer. “HP has a strong track record of making acquisitions and integrating them to capture leading market positions. We will deliver on the promise of HP and EDS for our customers and shareholders.”

The deal was first announced in May, and the $13.9 billion deal was finalized last month.