After a year of acquisition of Texas-based EDS, in May 2008, Hewlett-Packard, the world's no. 1 PC manufacturer, has planned to cut down the salaries of EDS employees by 30 percent.

The deal with Texas-based IT outsourcer EDS helped HPs' IT services business to expand and catapult it to the number two spot, just after IBM in IT services.

HP stated that it was the part of integration process which ensured that employees in both EDS and HP, holding the same roles, receive comparable compensation based on market rates. While pay would not be impacted for the majority of employees as a result of that process, some employees would receive pay reductions while others would benefit from salary increases.

Earlier in April , there had a 10 per cent pay cut for EDS workers in the US and Puerto Rico with salaries in excess of $40,000. But employees were told that it wasn't a permanent salary cuts.

After the poor fiscal in February, the company announced pay cuts for all its employees of between 2.5 per cent and 20 per cent.

HP signed a deal to acquire IT outsourcer EDS for $13.9 billion, or $25.00 per share.

The company has also announced that it has agreed to a multi-year, multi-million dollar contract to supply point-of-sale computer hardware to Play N Trade video game franchises, which has more than 250 retail stores worldwide.