About half the layoffs are expected to come from the US whilethe rest of the layoffs will be divvied up among combinedcompanies' operations in the rest of the world. The severancepackage will include a parting check, counseling and job placementservices. HP expects to replace roughly half of these positionsover the next three years "to create a global work force that hasthe right blend of services delivery capabilities to address thediversity of its markets and customers worldwide."

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With its $13.9-billion acquisition of EDS, HP believes it hasthe industry's most comprehensive portfolio of IT solutions at atime when enterprises are facing "an explosion of digital content,aging infrastructure and constrained resources" that will havecompanies reassessing their technology needs and whether they willmanage things in-house or outsource. HP wants to assist companiesin making decisions in this regard and be able to sell themsomething regardless of which decision they make. HP estimates thatits acquisition of EDS boosts it share of the IT services market to7%, putting it second only to IBM, which has an estimated 10%share.

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As part of the integration, HP said it plans to restructure theEDS business group to streamline costs, invest in growth and driveshareholder value. HP says it has identified synergies in corporateoverhead functions, such as real estate, IT and procurement.

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At the start of the year, EDS and its consolidated subsidiariesoperated approximately 218 locations in 42 states in the UnitedStates and 408 locations in 45 countries outside the United States.It owned approximately 2.7 million sf and leased an additional 22.6million sf. EDS' leased properties consist primarily of office andwarehouse space. Lease terms are generally five years or concurrentwith the length of a client contract. In addition to its owned andleased properties, EDS occupies office space at client locationsthroughout the world.

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EDS sold 16 domestic and international real estate properties in2005 as part of a streamlining of operations. Net proceeds from thesale were $178 million. Fourteen properties involved in the salewere leased back by EDS for various extended periods. At the end of2007, the company owned $1.7 billion of buildings and facilitiesand $60 million of land.

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