Feeds

Compaq to can 5,000 workers

Also slashing costs by buying more Taiwanese kit

  • alert
  • submit to reddit

Remote control for virtualized desktops

Compaq is to can 5,000 workers because sales have dropped off.

The company is going to earn less than expected in the first quarter, and Compaq Chairman Michael Capellas has said server demand is down, especially in telecommunications. "We do remain concerned about future deterioration," he said.

In January, Compaq forecast first-quarter sales of $9.6 billion. This has now been cut to $9 billion. For Q1 2000 Compaq made profits of $325 million on a turnover of $9.5 billion.

As well as shedding seven per cent of its staff Compaq intends to increase its part spend in Taiwan to cut costs. It spent $9.5 billion in 2000.

Capellas expects demand in Europe and Japan to weaken, following the slump in the US market. He said the company was doing OK with larger storage systems and high-end Unix boxes. Mobile and Net devices are also doing well according to Capellas.

A further cost cutting measure is to get the same factories to churn out both consumer and corporate PCs. The company is also slashing marketing costs, and will not replace Douglas Fox, senior vice president of marketing and strategy, who has left the company. ®

Related Stories

Gateway issues profit warning - again

Security for virtualized datacentres

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
ISPs handbagged: BLOCK knock-off sites, rules beak
Historic trademark victory, but sunset clause applies to future blocks
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.