Pink slips are flying again at Compaq

Pink slips are flying again at Compaq

Following on from the 28 staff that lost their jobs in April's merging of two business units into one, retrenchment notices were again doing the rounds at Compaq last week.

A spokesperson at Compaq on Friday confirmed that further staff cuts of both contractors and permanent employees were taking place but was not in a position to outline the extent of sackings or which departments were being affected.

Hugh Scott, Compaq's Corporate Communications manager said the retrenchments and non-renewal of contracts is part of the 5,000 jobs the vendor announced would be lost globally after poor Q1 results.

Sources close to ARN say morale is very low at Compaq's Australian office at the moment and has been since the Consumer and Commercial groups were combined to form the Access Business Group.

The source said the cuts will be effected across all business units and that under direction from Compaq's Houston global headquarters, every country has been given an "allocation" of staff that it must cut. It is expected that Compaq Australia has then given each business unit and department separate allocations and cost-cutting targets.

The sackings are as per instructions from Houston, but in addition to those, there is a significant number of contract staff which are not getting renewals as a further attempt to cut costs, the source said.

It is not just the costs that are being attended to by Compaq, revenues are also being driven hard. In addition to the reduced head count, according to the source, Q1 was a shocker locally and "product managers are under a tremendous amount of pressure to make the numbers this quarter".

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