Compaq posts losses, cuts up to 8000 jobs

Compaq has announced a second-quarter loss of $US184 million as a result of PC pricing pressures, inadequate revenue growth and an increase in expenses. In addition, the company announced that it will reduce its workforce by 6000 to 8000 employees.

Worldwide sales for the quarter, which ended June 30, were $US9.4 billion and total revenues for the quarter grew by 17 per cent, the company said in a statement. A year ago, the company reported earnings of $US32 million for the second quarter.

Michael Capellas, Compaq's newly-installed president and CEO, said the job cuts were necessary to get the company back on track financially.

"We are aggressively taking the appropriate actions to restore the company's growth and financial performance," Capellas said in the statement. "The realignment of the company is fully underway, our management team is basically in place and we already offer the powerful solutions and range of products customers needed to maximise Internet benefits through Compaq's NonStop eBusiness capabilities."

The realignment will help the company institute a strategy that includes timely product delivery and cost reduction, he said.

The chief factors driving the losses were inadequate revenue growth, a decline in gross margins, and increasing operating expenses, Capellas added.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jack McCarthy

PC World

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?