Hewlett Packard (NYSE:HPQ) announced plans to layoff 24,600 employees over the next three years as part of a restructuring plan after acquiring Electronic Data Systems (EDS) last month.

HP's plan to restructure is to better align the combined companies overall structure and efficiency with the operating model that HP has successfully implemented in recent years. Mark Hurd, HP chairman and chief executive officer stated, "HP now has the broadest technology capabilities in the market to meet customer needs today and in the future. 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."

The layoffs would vary by country and represents about 7.5% of the combined companies total workforce. Employees that are affected will be eligible for severance packages, counseling and job placement services.

This restructuring of their global company is expected to save them $1.8 billion dollars annually.

HP will take a charge of $1.7 billion dollars in the fourth quarter of 2008 relating to the restructuring program. $1.4 billion of that will be charged as "goodwill" and $0.3 billion will be recorded as a restructuring charge.

Hewlett Packard was $45.33 per share at pre-market on September 16, 2008.