Computer maker says it will cut 3,000 jobs, miss earnings expectations
Wednesday, April 18th 2001, 12:00 am
By: News On 6
PALO ALTO, Calif. (AP) _ Computer giant Hewlett-Packard plans to cut up to 3,000 management jobs to reduce costs as it expects to fall short of earnings and revenue expectations for its second fiscal quarter.
Blaming the worldwide decline in consumer spending in information technology, the computer company said Wednesday it expects earnings per share of between 13 cents and 17 cents for the quarter ending April 30.
This estimate includes approximately $150 million of one-time reductions in the value of its inventory and other writedowns.
Analysts surveyed by Thomson Financial/First Call had been expecting earnings of 35 cents a share for the quarter although those estimates typically exclude the impact of one-time writedowns.
Fiorina said the company will not defer salary increases beyond the 90-day delay instituted during the first quarter.
Instead, the company will try other ways to reduce expenses, including maintaining tight control of discretionary spending, requiring employees to take incremental days off and the elimination of up to 3,000 management positions.
The computer company also said it expects a revenue decline of up to 4 percent for the second quarter.
``At this time, it is quite clear that the U.S. downturn in the consumer market is now spreading to other regions, notably Europe,'' said Carly Fiorina, chairman, president and chief executive.