Posted on 10/06/2002 9:02:02 AM PDT by Jack Black
Associated Press
HP to Cut Additional 1,800 Jobs Citing Continued Weak Demand, Hewlett-Packard Co. Will Cut 1,800 Jobs Beyond the 15,000 Planned Wednesday September 25, 9:55 pm ET
By MATTHEW FORDAHL, AP Technology Writer
SAN JOSE, Calif. (AP) -- Citing continued weak demand, Hewlett-Packard Co. said Wednesday it will cut 1,800 jobs beyond the 15,000 reductions planned as part of its Compaq Computer Corp. acquisition. In a note sent to employees Tuesday, the company blamed the latest reductions on a "continued market slowdown and HP's clear intent to have a competitive, world-class cost structure."
As of the third quarter, which ended July 31, the company had reduced its net headcount by 4,740. The remaining cuts, totaling about 12,000, are expected to be completed by Oct. 31, the end of the company's current fiscal year.
Like other high-tech companies, Palo Alto-based HP has been hit hard by a slowdown in spending by large corporate customers, a slump that has lasted longer than first expected.
The company's bottom line also has suffered because of weak demand for personal computers. Its printing and imaging division, however, continues to do well despite the economic downturn.
In the letter to employees, HP executives said the company continues to hire in some areas, including printing and services.
The $18.9 billion merger with Houston-based Compaq closed May 3 after one of the most ferocious proxy battles in American corporate history. Combined, the companies had 150,000 employees.
In its first full results since the deal was finalized in May, HP lost $2.03 billion in its fiscal third quarter, compared to a loss of $116 million if the companies had been together last year.
Shares of HP gained 55 cents to close Wednesday at $12.84 on the New York Stock Exchange.
Hewlett-Packard: http://www.hp.com
I work on HP and Compaq computers, and I can safely say that I would never buy one, and I caution people I know not to buy one.
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