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Hewlett-Packard May Delay Raises

December 21, 2000

SAN JOSE, Calif. (AP) _ Hewlett-Packard Co. is telling employees their raises will be delayed for three months as part of an expense-cutting plan at the high-tech giant, the San Jose Mercury News reported Wednesday.

Two employees who received a memo about the delay told the newspaper the company said the move would save the company between $100 million and $140 million.

HP spokesman Dave Berman would not discuss details of the report Wednesday but said that overall, the company had ``instituted a number of different measures″ to do ``what any company would do in this situation _ try to bring costs more in line with anticipated revenues.″

After HP’s fourth-quarter earnings fell a dime per share short of Wall Street expectations in November, chief executive Carly Fiorina told investment analysts the company was tightening its expenses and canceling second-half bonuses for herself and other top executives.

The Palo Alto-based company, which has more than 80,000 employees, has said in recent weeks it would be affected along with other computer makers by slowing growth in domestic demand for PCs. But the company has maintained that its balance across several product lines and overseas markets should keep it on track to meet expectations of a 15 to 17 percent increase in revenue in fiscal 2001.

Shares of HP were down 50 cents to $29.94 in afternoon trading on the New York Stock Exchange.


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