Compaq warns of 4,000 more layoffs
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Posted in Business, 11th July 2001 10:33 GMT
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Compaq is to axe another 4,000 staff due to the PC sales slump.
The worldwide layoffs will take effect by the end of this year, and bring Compaq's proposed job cut total for the year to 8,500, or around 12 per cent of its workforce.
Compaq said "worsening economic conditions in Europe" were to blame for the move, which will result in the company taking a one off charge of $490 million in the second quarter.
"It is now clear that the economic slowdown is spreading overseas, and we will therefore move more swiftly and go even deeper in our structural cost reduction programs," said Compaq CEO Michael Capellas.
The layoffs, which the company expects will save it $900 million per year, were announced after market close yesterday. Compaq also warned that second quarter sales would be down 17 per cent on the previous year at $8.4 billion.
The Houston-based vendor is due to announce its Q2 results on 25 July. ®
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