Los Angeles, Sept. 26: Hewlett-Packard Co. on Wednesday said it will cut another 1,800 jobs on top of the 15,000 layoffs planned as part of the acquisition of Compaq Computer Corp. amid persistent weakness in technology spending by consumers and large corporate customers.
The largest US personal computer and printer maker had promised to accelerate cost-cutting efforts last month when it reported declining revenue in most product lines. HP president Michael Capellas said this week that the company will meet its goal of cutting 10,000 jobs by the end of next month, a month earlier than planned. Other cuts will be completed by the fall of 2003. About 8,200 jobs will be eliminated from the Hewlett-Packard side of the operation and about 8,600 from the former Compaq by the end of October 2003, the company said. Hiring will continue in the printer and services operations, a company spokesman said.
HP bought rival Compaq for $ 18.9 billion in the largest ever technology merger to boost efficiencies. Since the deal closed in May, technology spending has worsened more than expected, especially corporate spending for information technology.