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HP trims costs ahead of schedule

Associated Press

SAN JOSE, Calif. -- One month after closing its $19 billion buyout of Compaq Computer Corp., Hewlett-Packard Co. is slashing costs ahead of schedule and will exceed its publicly stated goals for trimming overhead, chief executive Carly Fiorina said Tuesday.

At a daylong meeting with financial analysts in Boston that was broadcast over the Internet, Fiorina said HP still plans to hack 15,000 jobs from its 150,000-person work force, with 10,000 cuts coming before Nov. 1 and the rest in fiscal 2003.

The Palo Alto-based company had predicted that the acquisition would generate $2 billion in cost savings in 2003 and $2.5 billion in 2004. But partly because the job cuts are happening faster than planned, Fiorina said the company now expects to save $2.5 billion in 2003 and $3 billion the following year.

HP shares rose 12 cents, less than 1 percent, to $18.97 in trading Tuesday on the New York Stock Exchange.

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