BANGALORE, INDIA: HP (Hewlett Packard) plans to sack 24,600 people over the next three years from its global workforce as part of its restructuring process. Around 50 per cent of the said numbers reduction will happen in the US, reports said.

HP in its statement said that the restructuring program will take place over three years and includes a workforce reduction that will streamline the combined company’s services businesses.

“Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate.

Approximately 7.5 per cent of the combined company’s workforce, or about 24,600 employees, will be affected over the course of the program, with nearly half of the reductions occurring in the United States,” the company said.

HP will provide employees affected by this restructuring program with severance packages, counseling and job placement services, said a company statement.

The company said, at its securities analyst meeting, that it will unveil a strategic plan to establish a powerful position in the evolving enterprise market and also will announce plans to restructure the EDS business group to streamline costs, invest in growth and drive shareholder value.

“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.”

Once completed, the restructuring program is expected to result in annual cost savings of approximately $1.8 billion. These savings are net of reinvestments in areas including sales coverage, delivery optimization and emerging markets.

HP will be recording a charge of $1.7 billion in the fourth quarter of the financial year 2008 relating to the restructuring program, $1.4 billion of which will be recorded as goodwill and $0.3 billion will be recorded as a restructuring charge that will be included in HP’s GAAP financial results.

Meanwhile, Unite, the UK's largest union, has today condemned HP announcement that it intends to shed 24,600 staff globally in a re-structuring program.