EDS Australia cuts begin

Electronic Data Systems today confirmed it would cut 75 Australian staff as part of the integration process associated with Hewlett-Packard's acquisition of the global IT outsourcer.

Globally, the pair are planning to reduce their combined workforce by about 24,600, or 7.5 per cent, as they consummate their marriage. "This is part of the global announcement we made on September 15," an EDS Australia spokesperson said this morning, confirming the cuts.

The spokesperson said most of the selected staff would be notified or affected in the next five weeks. Although the spokesperson could not provide further details, they added EDS had notified employee union, the Association of Professional Engineers, Scientists and Managers Australia as well as customer Centrelink of the cuts on Wednesday.

A spokesperson for the Australian division of Hewlett-Packard declined to comment on whether the parent firm was also currently making local cuts.

In the UK, the pair have revealed plans to chop 3,378 jobs over the next two years, but the Australian EDS spokesperson said at this stage further decisions regarding more local reductions had not been made.

"In Australia, our operational integration is in progress," the spokesperson said. "As with all the other parts of the world, the integration is dealt with according to timelines and roadmaps that are being established. It is possible that there would be further areas of overlap or organisational realignment that may impact our employees."

The spokesperson could not comment on whether any decisions had been made regarding who would lead the combined organisation in Australia or what reporting structure would exist. Neither HP nor EDS has announced local leadership changes, with both saying it was business as usual for the time being.