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Asked to take 10% pay cut

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Hewlett Packard has asked its contract staff in the UK to take a pay cut to help it through the current sales downturn.

Contractors have the option to take a 'voluntary' ten per cent salary chop, which will take effect from 1 August until the end of November, according to an email seen by The Register.

HP said in the email that its 'honest intention' was to keep the pay cuts to the four month period, but added that it would "continue to monitor [the] business climate".

The cuts, which HP said would "ensure the company is best positioned to impact the market when the recovery comes," are part of a worldwide cost saving move at the PC vendor.

HP has already asked its 3,700 permanent staff in the UK to take a 10 per cent salary chop, effective from July to the end of October, along with eight days of unpaid holiday.

EagleCliff, one of the agencies HP uses for contract staff in the UK, today declined to comment on the move. "It's something we're discussing between HP and ourselves," said one representative of the Kent-based agency.

HP also refused to confirm or deny the move.

At least a quarter of HP's 90,000 permanent staff worldwide have so far agreed to take the company up on its salary reduction/holiday offer. ®

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