Apply today for a FREE subscription to CIO Magazine!
Wed, Jul 30, 2008 18:10 EDT
HP and EDS: Let the Layoffs Begin?
|
Posted by: Stephanie Overby in News Topic: Partner/Vendor ManagementBlog: Talent Show
Current Rating: |
As HP inches closer to sealing its deal to acquire EDS, rumor has it that executives at EDS may be putting the finishing touches on severance packages for a significant number of its staff.
An EDS employee told CIO.com that, within the walls of the Dallas-based IT services provider, the rumor is that the company plans to lay off 20 percent of its Americas-based workforce tomorrow. EDS's director of corporate public relations adamantly denies any immediate workforce reduction, saying that any information about plans to pink-slip that many employees tomorrow is "completely factually inaccurate." *
It's been just over two months since HP announced its plans to purchase EDS for more than $13 billion. In the last few days, the European Commission approved the union, and HP and EDS announced that they'd settled shareholder litigation related to their potential merger. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 relating to the deal expired without a request for further information by the U.S. Department of Justice or Federal Trade Commission last month. And EDS stockholders are scheduled to vote on the transaction tomorrow.
EDS employees may not be the only ones distressed by the seeming certainty of the HP-EDS hook-up. Although most analysts and consultants still contend that a combined HP-EDS will be beneficial for most customers, there is one big user who’s taking the news harder than the rest. GM CIO Ralph Szygenda is smarting, one IT consultant who recently spent some time with Szygenda tells me. The long-time auto industry CIO who marketed his multi-sourced IT services environment as the "third wave of outsourcing" will find his IT services provider significantly less diversified once the marriage of HP and EDS is official. The Szygenda strategy, having a multitude of outsourcers cooperating -- and competing -- to deliver IT services at a lower cost, is will be set back several years due to the HP-EDS deal, says the consultant.
* This post was updated to reflect the additional comments from EDS.
EDS, HP, IT services, layoffs, mergers, outsourcing
Rating:
A friend of mine in the Denver area just told me that she had been laid off this morning from the EDS Louisville, CO facility. She's been with EDS since late 1991.
Rating:
Amazing...... It doesn't matter how hard you work, when they decide to cut, they cut. Apparently living in America has become a liability to your job.
Rating:
There were layoffs in Brazil, too, so this is affecting the BestShore people, too. Losing too many people. Pretty soon, we won't be able to support our clients.
Rating:
Well now the offshore folks know how it feels to be laid off from your job. The offshore countries have been stealing American jobs for years. Now they are starting to lose their jobs too. I'd like to say I feel sorry for you but I don't. Now you know how it feels like to be laid off due to some corporate directive.
Rating:
Well, I guess what goes around comes around.
IT staffing and outsourcing in the global economy: news, advice, best practices and occasional humor
Fighting the Superstitions of Software Development: Questioning the Assumptions
Posted by Esther Schindler in Best Practices | 4 comments
RIM BlackBerry Tip: Create New Word, Excel, PowerPoint Files in Documents to Go for FREE
Posted by Al Sacco in Soapbox | 5 comments
"Best" BlackBerry Apps: Not All Lists Are Created Equal
Posted by Al Sacco in Soapbox | 5 comments
Take Control of your Career Plan - Why Courses/Certification do not always mean "Time to Move Up"
Posted by Anonymous in Best Practices | 11 comments
Are More CIOs Getting Fired?
Posted by Abbie Lundberg in Soapbox | 15 comments
Got something to say? We want to hear it! Click the Post button to get started. GO»
- EDS
- HP
Are More CIOs Getting Fired?
RIM BlackBerry Tip: Create New Word, Excel, PowerPoint Files in Documents to Go for FREE
"Best" BlackBerry Apps: Not All Lists Are Created Equal
RIM BlackBerry Bold: At About $400, Pricier than iPhone 3G – For Good Reason
SAP: Financials Are Rosy, But Trouble Is Brewing in the Ecosystem
The Impact of Globalization on Executive Job Searches and Economic Prosperity
Dell Gets Caught in Cloud Computing Storm
Palm Leaks Images, Specs on Next Treo, the 850…Errr, Treo Pro
Innovation and Web 2.0
HSBC to Bank on iPhone 3G as Corporate Smartphone, Ditch BlackBerry?
advertisement
|
|
Enterprise Content Management: From Strategy to Solution
Enterprise content management (ECM) has become an important competence and infrastructural technology, particularly for large and medium-sized organizations.
Hear about industry trends for ECM and why standardizing your ECM platform is so critical to your success during this roundtable discussion.
Sponsored by IBM
View This Webcast »
The CIO's Guide to Wireless in the Enterprise
This guide provides a basic overview and worksheet of mobile computing for those who are interested in evaluating a wireless enterprise solution.
Sponsored by Blackberry
Read This White Paper »
Learn how replacing multiple wireless clients with one Universal Wireless Client can cut support and help desk costs, increase end user satisfaction, improve security, and help implement Network Access Control.
Sponsored by Fiberlink
Read this White Paper »
Get instant email notifications by topic when white papers, webcasts, and case studies are added to our library.
Sign-up for the Advice & Opinion Newsletter
