HP to cut 1,800 more jobs; company cites weak demand by companies, consumers

<br>SAN JOSE, Calif. (AP) _ Citing continued weak demand, Hewlett-Packard Co. said Wednesday it will cut 1,800 jobs beyond the 15,000 reductions planned as part of its acquisition of Compaq Computer Corp.

Wednesday, September 25th 2002, 12:00 am

By: News On 6

SAN JOSE, Calif. (AP) _ Citing continued weak demand, Hewlett-Packard Co. said Wednesday it will cut 1,800 jobs beyond the 15,000 reductions planned as part of its acquisition of Compaq Computer Corp.

All cuts were expected to be completed by Oct. 31, the end of the company's fiscal year.

Like other high-tech companies, Palo Alto-based Hewlett-Packard has been hit hard by reduced spending by large corporate customers. Its bottom line also has suffered because of weak demand for personal computers, though its printing and imaging division continues to do well.

In the letter sent to employees Tuesday, Hewlett-Packard executives said the company continues to hire in some areas, including printing and services.

HP's $18.9 billion merger with Houston-based Compaq closed in May after a ferocious proxy battle. Combined, the companies had 150,000 employees.

In the first full results since then, Hewlett-Packard lost $2.03 billion in its fiscal third quarter, compared to a loss of $116 million if the companies had been together last year.