From today's Reuters newsfeed:

=======================================

SAN FRANCISCO, Sept 25 (Reuters) - Hewlett-Packard Co. will cut 1,800 jobs in
addition to the 15,000 planned in its merger with Compaq Computer Corp, the
No. 1 personal computer and printer maker said on Wednesday.

"Due to a continued market slowdown and HP's clear intent to have a
competitive, world-class cost structure, HP has increased its total number of
planned headcount reductions to 16,800 by fiscal year 2003," the company said
in a statement.

A spokesman added that the 16,800 goal was for the end of the fiscal year,
which would be Oct. 31, 2003.

The new total means HP will trim more than 11 percent of the 150,000 jobs
that existed when it acquired Compaq in May. That deal was predicated on
improving profits by trimming costs.

However, HP says it is hiring in its profitable services and printing
divisions. The personal computer and high-end computing divisions currently
are money-losing.

Speculation that HP would announce new job cuts has been widespread, given
the slow economy and the size of a recent loss in its high-end computing
division.

The company said in a statement that market dynamics had changed since the
merger was concluded in May, "in particular, the slowdown in enterprise IT
(information technology) spending which is persisting six to 18 months longer
than previously estimated by most economists."

HP plans on cutting 10,000 jobs by Oct. 31, 2002 and had cut some 6,500 by
late August.

Shares of HP were up 6 cents, about half a percent, to $12.35 on the New York
Stock Exchange, while the Nasdaq Composite index <.IXIC> was up 1.67 percent.

09/25/02 13:00 ET

=======================================

Wirt Atmar

* To join/leave the list, search archives, change list settings, *
* etc., please visit http://raven.utc.edu/archives/hp3000-l.html *