Hewlett-Packard reveals cost of job-cutting program

October 09, 1992|By New York Times News Service

SAN FRANCISCO -- Hewlett-Packard Co. said yesterday that it would take a special charge of 40 cents a share in the current quarter to cover a voluntary employment-reduction plan.

The company said it expects about 2,700 employees, 2,000 in the United States, to leave the company in early 1993 as part of the severance-incentive plan intended to cut expenses.

Hewlett-Packard stock closed yesterday at 53 3/8 , down 1/4 , on the New York Stock Exchange.

Analysts had expected the job cuts since August, when the company posted disappointing earnings for its third quarter that ended July 31 and said it would further reduce expenses.

Hewlett-Packard carried out similar programs in 1986, 1990 and 1991; it now has 90,900 employees.

"The program is one of a number of work-force balancing and expense-control options that we've used in the past to help manage the changing needs of our business," said John A. Young, president and chief executive officer.

"Programs like this have proven to be successful and equitable ways to adjust our employment."

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