Hewlett-Packard has revealed that it expects to save around $2.5 billion by 2003 following its controversial merger with Compaq. The $2.5 billion in cost savings is being attributed to better than expected cost synergies and a program of cutbacks progressing more quickly than anticipated.
Company CEO Carly Fiorina announced to a security analyst’s conference that HP’s program of job cuts was ahead of schedule. HP is expected to shed around 10,000 jobs before the end of the company’s fiscal year in November, and a further 5,000 jobs next year. HP is hoping that around 4,000 of these redundancies will be voluntary. The 15,000 job cuts represent around 10% of the company’s total workforce.
The company is not expecting a recovery in any of its markets this year and has refused to rule out further job cuts, as the quest for cost savings continues.