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.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jack McCarthy

PC World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?