July 26, 2001

Hewlett-Packard Cutting 6,000 Jobs

By THE ASSOCIATED PRESS


Filed at 8:41 a.m. ET

PALO ALTO, Calif. (AP) -- Computer and printer maker Hewlett-Packard Co.
(news/quote) is slashing approximately 6,000 jobs, about 6.6 percent of its
global work force, due to deteriorating global economic conditions and
related weakness in technology spending.

The company also said Thursday it expects revenues for the third quarter
ending July 31 will decline 14 percent to 16 percent from the same time last
year.

``Economies around the world continue to weaken as we move through the
quarter,'' Carly Fiorina, HP chairman and chief executive, said in a
statement. ``Our consumer business is being particularly hard hit with
revenues expected to be down 24 percent.''

Fiorina said H-P expects the cuts to result in a savings of about $500
million annually.

The Palo Alto-based company said it has also taken additional short-term
actions to keep expenses down. One such action, a voluntary payroll saving
program, is expected to save approximately $130 million for the rest of the
year, the company said. More than 80,000 employees offered to take pay cuts
or use additional vacation days in an effort to trim costs.

As of early July, the company employed about 90,000 people worldwide.

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