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.

Natalie Weinstein Former Senior Editor / News
I spent a decade as a reporter and editor before joining the CNET News staff as a copy editor in 2000, right before the dot-com bust.
Expertise Copy editing. Curating, editing and reading newsletters of all stripes. Playing any word-related game, specifically Scrabble, Wordle and Boggle. Credentials
  • I've been a journalist for more than three decades. I was a finalist in the 2021 Digiday Media Award for Best Newsletter.
Natalie Weinstein

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.