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Technology Stocks : Compaq
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To: Captain Jack who wrote (82657)6/13/2000 9:52:00 AM
From: Windseye  Read Replies (1) of 97611
 
CJ,
I'm beginning to suspect that the plan not to fire the extra 6000 folks at CPQ after the Dec merger has gone awry. It may have made more sense IF the short supply of tech workers on board would have inhibited CPQ's move into the profitable arenas, but I suspect that the major reason margins are so bad now at CPQ vis a vis Dell is that they are carrying too much deadwood, and taking too big a chance on having "extra" folks around to support the new market endeavors. There seems to be an unnecessary surplus of help, and the $/employee number is almost half of what it was prior to the Dec purchase.

Doug
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