Feeds

Compaq warns of 4,000 more layoffs

Europe blamed

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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. ®

Related Link

Compaq statement

Related Stories

HP prompts staff to take unpaid summer holidays
Intel takes Alpha from Compaq's hands
Compaq waves white flag in PC price war

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.