In the coming three years, 24,600 employees working in Hewlett-Packard (HP), will lose their jobs, for the company has joined operations with Electronic Data Systems, which is basically a technology services company acquired by HP recently. The news came last night and it will account in cut of nearly 8% of the employees.

HP confirmed after the markets were closed yesterday that the employees working within the ranks of EDS will suffer most of the job cuts whereas half of them would get jobs in the US.

Earlier HP had not clarified as to how many employees of both the companies will lose their jobs. HP had 178,000 staff and EDS had 142,000 before the agreement was signed between the two companies.

Founded in 1962 by former US presidential contender, Ross Perot, EDS is very well known in Britain for its often hyped dealings related to public sector contracts.

EDS was behind the invention of London's Oyster card public transport fare payment system and also technology of payment for the Child Support Agency and support services for the Inland Revenue, which however could not be that successful but did attract the anger of MPs.

With the aim to over show and challenge IBM, HP had bought EDS for $13.9bn, and is now hoping for more profitable, long-term business of helping companies to mange effectively their computing infrastructure.

The company is hoping that as soon as the restructuring is over, it will save $ 1.8bn annually from the cuts. Moreover it will also gain a $1.7bn charge in the present quarter on the account of a goodwill adjustment and other costs connected to the restructuring.