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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (715)	6/4/2002 9:27:21 AM
From: PCSS	Read Replies (1) \| Respond to of 4345

H-P says cost cuts ahead of plan By August Cole, CBS.MarketWatch.com Last Update: 9:04 AM ET June 4, 2002 BOSTON (CBS.MW) - In her first analyst address since Hewlett-Packard took over rival Compaq, H-P CEO Carly Fiorina said Tuesday that the tech giant is cutting jobs and costs faster than expected. Fiorina noted that by early November, the end of the company's fiscal-year 2002, about 10,000 workers will be gone. She said that by the end of 2003, an additional 5,000 will have left through voluntary departure, bringing the total to 15,000 - as has been expected. Other cost-cutting plans are also coming together, she noted. In 2003, the company will save $2.5 billion, a year ahead of schedule. "We are overachieving on these targets because of non-people related items," she said. Looking broadly at the IT spending environment, the company's most recent outlook for the second half of this year remains the same but the 2003 and 2004 market looks to be weaker than expected. Yet the firm's imaging and printing operations should grow faster than the market, she remarked. To assuage concerns about the integration of the two companies, she said IT systems are being woven together smoothly. Perhaps more low tech but no less important, replacing old-fashioned company signs was done the first day after the merger was consumated. Salary changes, however, will remain out of reach until 2003, Fiorina said, for executives and rank-and-file workers alike. Until the company can effectively increase salaries for all its workers, the firm's executives will not get a raise, she explained. Shares of H-P (HPQ: news, chart, profile), which tied the knot with Compaq in an almost $19 billion marriage, fell 24 cents to $18.85 on Monday.