Features

HP may fire contract workers after mandatory 3-week break

Staff
Friday June 21, 2002

PALO ALTO — Hewlett-Packard Co. is reviewing whether it will dismiss some of the 4,000 contract employees in the company’s internal technology department, and most of the group is being forced to take three weeks off without pay, an HP spokesman said Thursday. 

HP expects to save $15 million to $20 million by imposing the three-week furlough on all but its most critical technology contractors from Monday through July 12, spokesman Arch Currid said. 

If HP decides to release some of those workers, those cuts would come in addition to the 15,000 jobs that are being slashed at HP because of its $19 billion acquisition of Compaq Computer Corp. Many cuts are being achieved through voluntary retirement programs.