HP to cut pay

Technology: Anger at Hewlett-Packard plan to cut employee pay
Technology: Anger at Hewlett-Packard plan to cut employee pay

02/19/2009, 22:13     [The Guardian]    


UK union leaders have reacted with anger to plans by Hewlett-Packard to slash employees' pay by 5% after the American computer manufacturer announced a drop in third-quarter profits from $2.13bn to $1.85bn and warned about profit levels for the year ahead. Under the plan, executive salaries will be reduced by 10%-20%. Unite, the UK's largest union, expressed astonishment at the move. "UK employees. . . will be astonished that a company that is increasing revenue and still making substantial profits is seeking a pay cut from its UK workforce," he said. HP was unavailable for comment. Richard Wray


HP pay cuts to hit Singapore staff
HP pay cuts to hit Singapore staff

02/19/2009, 22:02     [TODAY (Singapore)]    


SINGAPORE employees of Hewlett-Packard (HP) will be facing pay-cuts starting April, as the headquarters implements wage cuts and retrenchments to cope with the recession.

The company  which is the worlds :largest personal-computer maker  has about 6,000 staff here, according to 2006 local media reports.

HP chief executive Mark Hurd informed employees on Wednesday that he would take a 20-per-cent cut in his base salary, while executive pay will drop 10 to 15 per cent and most :employees, by 5 per cent.

HP Singapore employees are affected by the wage cut exercise as this is a company-wide, global initiative. We will begin implementation with upper level managers across the region by April 1, a spokesperson here told Today.

:In a staff memo obtained by :Bloomberg:, Mr Hurd wrote: In an environment like this, theres no margin for error and no tolerance for inaction ... My goal is to keep the muscle of this organisation intact, but we do have to do something because the numbers just dont add up.

HP posted a 13-per-cent drop in first-quarter profit to US$1.85 billion ($2.82 billion), due to weakness in all major business lines except services. Sales ticked up 1 per cent to US$28.8 billion, more than US$3 billion short of the average estimate of analysts polled by Thomson Reuters. AGENCIES