HP managers cop pay cuts in restructure

HP managers cop pay cuts in restructure

In a bid to cut costs, Hewlett-Packard later this year will close its offices in 120 countries for four days and impose a three-month, 5 per cent pay cut on about 2400 middle-and high-level managers, a company spokeswoman said this week.

An official from HP Australia said the local office would not close, except for "a few days" over the Christmas period. The official said the pay cuts would affect 10 to 15 local managers.

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

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.

This is not the first time HP has made such moves. In 1991 senior managers were offered early retirement and voluntary severance packages in an effort to help control expenses.

HP's offices in the US will be closed for four days between Christmas and the New Year, and its offices worldwide will be 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 US, she said.

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