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HP further cuts EDS salaries

Hewlett-Packard tells employees of EDS, which it acquired last year, that their salaries will temporarily be cut by 10 percent more than was announced last month.

Hewlett-Packard is cutting salaries of EDS workers another 10 percent beyond what it first announced in February, ZDNet reported Friday.

Last month, the company announced salary cuts for all employees, ranging from 2.5 percent for nonexempt employees to 20 percent for the CEO, ZDNet said. HP also said it was making changes to employee benefits to save money.

According to a Friday memo obtained by ZDNet: "Unfortunately, we need to take additional action. Specifically, we have decided to make a temporary, additional reduction in base salary affecting EDS business unit employees in the United States and Puerto Rico."

The temporary salary reductions will go into effect next month and end in May, according to the memo, and workers who make less than $40,000 annually are excluded.

Hewlett-Packard acquired EDS in a multibillion-dollar deal last year.