HP to temporarily cut managers' pay, close offices

In a bid to cut costs, Hewlett-Packard will later this year close its offices in 120 countries for four days and impose a three-month, 5% pay cut on about 2,400 middle- and high-level managers. 'We're trying to get costs and expenses more in line with revenues,' representative Anne McGrath said.

In a bid to cut costs, Hewlett-Packard will later this year close its offices in 120 countries for four days and impose a three-month, 5 percent pay cut on about 2,400 middle- and high-level managers.

"We're trying to get costs and expenses more in line with revenues," representative Anne McGrath said.

HP last week warned that ongoing economic turmoil in Asia had prompted it to reduce its earnings estimates for the current quarter to below analysts' expectations. Revenues are expected to increase slightly over the previous year while net income will be flat to moderately lower, HP said.

Last Thursday, National Semiconductor said it would furlough its entire workforce for 10 days in the coming months, also as a cost-cutting measure in response to conditions in Asia.

HP's offices in the United States will be closed for four days between Christmas and New Year, and its offices worldwide will close temporarily at around the same time. The workers will be asked to use up vacation time or take unpaid leave, McGrath said.

HP employs about 125,000 worldwide, about half of whom are in the United States, she said.

Hewlett-Packard Co., in Palo Alto, Calif., can be reached at http://www.hp.com.

Join the newsletter!

Error: Please check your email address.
Show Comments
[]