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HP surprises Wall Street with size of EDS job cuts

Associated Press, September 16, 2008

Hewlett-Packard Co. announced five months ago it was acquiring technology-services firm Electronic Data Systems Corp., and Wall Street expected big layoffs from the combined company. But when HP announced the size of the job cuts—24,600 jobs over the next three years, nearly 8% of HP's 320,000-employee work force—it came as a shock. The surprise could provide a lift for HP's stock price because of the potential cost savings from the dramatic reduction in staff and HP Chief Executive Mark Hurd's track record for wringing more profits out of lean operations.